Southeastern Pennsylvania Transportation Authority

FISCAL YEAR 2021 OPERATING BUDGET PROPOSAL

July 1, 2020 through June 30, 2021 and Fiscal Years 2022 – 2026 Financial Projections

Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to Southeastern Pennsylvania Transportation Authority, Pennsylvania, for its Annual Budget for the fiscal year beginning July 1, 2019. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device.

This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award.

i.

Southeastern Pennsylvania Transportation Authority

Board Members

Chairman

Pasquale T. Deon, Sr.

Vice-Chairman Honorable Kenneth Lawrence, Jr.

Bucks County Chester County Delaware County Pasquale T. Deon, Sr. Joseph E. Brion, Esquire Thomas E. Babcock Honorable Charles H. Martin Kevin L. Johnson, P.E. Mark H. Dambly

Montgomery County City of Philadelphia Robert D. Fox, Esquire Michael A. Carroll, P.E. Honorable Kenneth Lawrence, Jr.

Governor’s Appointee

Obra S. Kernodle, IV

Senate Majority House Majority Leader Appointee Leader Appointee Honorable Stewart J. Greenleaf Honorable Marcy Toepel

Senate Minority House Minority Leader Appointee Leader Appointee William J. Leonard, Esquire John I. Kane

SEPTA Officers

General Manager

Leslie S. Richards Deputy General Manager - Treasurer Richard G. Burnfield General Counsel

Gino J. Benedetti, Esquire

Controller to the Board

Stephen A. Jobs, CPA

Secretary to the Board

Carol R. Looby

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SEPTA FY 2021 Operating Budget Proposal Table of Contents

PREFACE GFOA Award ...... i SEPTA Board Members and Officers...... ii Table of Contents ...... iii

1. INTRODUCTION AND PROFILE SEPTA History ...... 1 SEPTA Service Profile at a Glance ...... 2 SEPTA Rail & Transit Maps ...... 3 Passenger Profile ...... 5 Customer Satisfaction Ratings/Key Regional Transportation Trends ...... 7 Strategic Business Plan ...... 9 Key Performance Indicators ...... 10

2. THE BUDGET PROCESS Budget Development ...... 17 Fiscal Year 2021 Calendar ...... 18 Key Activities in the Budget Process ...... 19

3. FISCAL YEAR 2021 ASSUMPTIONS & CONSOLIDATED BUDGET Assumptions ...... 20 Fiscal Year 2021 Consolidated Budget ...... 21

4. FINANCIAL & BUDGETARY POLICIES Financial Planning Policies ...... 22 Revenue Policies ...... 23 Expenditure Policies ...... 24 Description of Existing Debt and Debt Service Policies ...... 24 Statement of Changes in Equity ...... 30

5. ORGANIZATIONAL STRUCTURE Operating Divisions ...... 31 Operating and Staff Departments ...... 32 Corporate Team Organization Chart ...... 34

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SEPTA FY 2021 Operating Budget Proposal Table of Contents

6. THREE YEAR COMPARISON FISCAL YEARS 2019 - 2021 Consolidated ...... 35 City Transit Division ...... 36 Victory Division ...... 37 Frontier Division ...... 38 Regional Rail Division ...... 39

7. FINANCIAL PROJECTIONS Summary of Assumptions ...... 40 Financial Projections of Consolidated Budget ...... 41

8. OPERATING REVENUE AND SERVICE PLAN OVERVIEW Annual Service Plan Overview ...... 42 Revenue Assumptions by Category ...... 43 Ten Year Revenue Trends ...... 44 Summary of Operating Revenue ...... 45

9. OPERATING SUBSIDIES Subsidy Allocation and Detail ...... 46 Service Stabilization Fund ...... 49 Detail of Subsidies ...... 50 Summary of Operating Subsidies ...... 51 Detail of Local Subsidies and Other by County ...... 52 Summary of Local Subsidies by County ...... 53

10. OPERATING EXPENSES Expense Assumptions by Category ...... 54 Ten Year Expense Trends ...... 56 Summary of Operating Expenses ...... 58 FY 2021 Budget Proposal – Detail of Expenses ...... 59 FY 2021 Budget Proposal – Allocation By Company ...... 60 FY 2020 Budget – Detail of Expenses ...... 61 FY 2019 Actual – Detail of Expenses ...... 62

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SEPTA FY 2021 Operating Budget Proposal Table of Contents

11. HEADCOUNT AUTHORIZATIONS Headcount Designations ...... 63 Fiscal Year 2021 Headcount Authorizations ...... 64 Fiscal Years 2017-2021 Headcount Authorization ...... 66 Headcount Authorization Cause of Change ...... 68

12. DEPARTMENTAL SUMMARIES BY DIVISION Corporate Staff...... 71 Transit Police...... 76 System Safety ...... 80 Operations ...... 86 Vehicle Engineering and Maintenance ...... 99 Engineering, Maintenance and Construction ...... 110 Deputy General Manager/Treasurer’s Staff ...... 122 Finance ...... 133 Planning and Strategic Initiatives ...... 143 Employee Development and Relations ...... 151 Human Resources ...... 158 Procurement, Supply Chain and Disadvantaged Business Enterprise ...... 164 Audit and Investigative Services ...... 172 Customer Experience and Advocacy ...... 178 Office of General Counsel ...... 185 Public and Government Affairs ...... 192

13. SUMMARY OF INTERDEPARTMENTAL EXPENSES Fringe Benefits ...... 200 Non-Departmental Expenses ...... 202 CCT Connect ADA and Shared Ride Programs ...... 203 Other Operating Expenses ...... 203

GLOSSARY Acronyms ...... 204 Terms ...... 208

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1. Introduction and Profile

SEPTA’s History

Greater Philadelphia has evolved into a vibrant center of economic growth in the country and the Southeastern Pennsylvania Transportation Authority’s (SEPTA) multi-modal transit system has been a catalyst for this development; providing service to three states and giving riders in the region easy access to work, school, healthcare appointments, recreational outings, and major shopping destinations. The policy makers’ commitment to investing in transportation at the federal, state, and local level has enriched the lives of residents, visitors, and tourists.

SEPTA was created by the Pennsylvania General Assembly in 1964 as a solution to the need for a regional approach to transit, which would provide needed transportation for passengers, shared services to reduce expenses and greater access to financial markets to help maintain and expand the system. On September 30, 1968, after five years of negotiations, SEPTA acquired the Philadelphia Transportation Company. The Philadelphia Transportation Company was created January 1, 1940 and was responsible for the operation of buses, trolleys, trackless trolleys, and subway elevated lines: the Market-Frankford line and the Broad Street line in the Philadelphia area.

In 1983, SEPTA was required to take over all operations of Conrail’s passenger railroad to be integrated with the Authority’s existing transit services. Conrail, which was federally funded, had originally assumed responsibility for the passenger services of the Pennsylvania Railroad and the Reading Company in 1976. Both railroads went bankrupt due to the decline in the demand for the transportation of coal, the introduction of superhighways, and the advance of air travel. After a difficult transition and a 108 day strike by Conrail railroad workers, SEPTA’s Regional Rail Division was established. Between Fiscal Years 2012-2016, Regional Rail had outpaced transit in annual ridership growth and is a critical component in Southeastern Pennsylvania’s economic engine.

INTEGRATING SOUTHEASTERN PENNSYLVANIA’S TRANSIT NETWORK

1964 1968 1970 1976 1983 1984 1985

Created by Acquired Acquired Acquired Acquired Opened Opened PA State Phila. Phila. Schuylkill Former “Center Service Assembly Transp. Suburban Valley Penn City” on Company Transp. Lines Central Commuter Airport Company (Frontier) and Tunnel Line (Red Reading Arrow) Railroads

1 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Today, 55 years after its creation by the Pennsylvania General Assembly, SEPTA is the nation’s sixth largest transit system, with a vast network of fixed route services including bus, subway, light rail, trolleybus, and Regional Rail, as well as ADA Paratransit and Shared Ride programs. This network provides service in Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties with connections into New Jersey and Delaware. SEPTA is also one of the region’s largest employers, with a workforce of over 9,500 employees.

SEPTA SERVICE PROFILE AT A GLANCE

FIXED REVENUE STATIONS ANNUAL ROUTES VEHICLES & STOPS TRIPS (in millions)

BUS & TROLLEYBUS 128 1,500* 13,054 142.2

MARKET-FRANKFORD LINE 1 218 28 52.0

BROAD STREET LINE 1 125 25 35.5

REGIONAL RAIL 13 396 155 34.2

LIGHT RAIL 8 159 670 24.4

NORRISTOWN HIGH SPEED 1 26 22 3.1 LINE

ADA PARATRANSIT/SHARED N/A 460 N/A 1.5 RIDE

*Exact number varies as new buses are acquired and old vehicles are retired.

2 | SEPTA FY 2021 Operating Budget Proposal

1. Introduction and Profile

3 | SEPTA FY 2021 Operating Budget Proposal

1. Introduction and Profile

4 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

SEPTA Passengers

The following charts serve to illustrate the demographic distribution of SEPTA ridership. This data was recorded and compiled as part of the SEPTA 2018 Customer Satisfaction Survey. The next Customer Satisfaction survey is expected to commence in the Spring of 2020.

Age of Adult Passengers

56 to 65 66 to 75 76 or older 15% 5% 1% 18 to 25 46 to 55 14% 18%

26 to 35 36 to 45 27% 20%

HOUSEHOLD INCOME OF Annual Household Income of SEPTA PASSENGERS Passengers

$100 k or more $75 k to < $100 k 11% 8% $50 k to < $75 k Under $15 k 17% 18%

$15 k to < $25 k $35 k to < $50 k 15% 16% $25 k to < $35 k 15%

5 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Ethnicity of Passengers

60%

50% 48% 43% 40%

30%

20%

7% 10% 5% 1% 0% African American White Hispanic or Latino Asian or Pacific Other or Black Islander

Note: In the above chart, percentages total more than 100% as respondents were able to select multiple responses to this question to more accurately reflect an individual’s racial and ethnic background.

Gender of Passengers

Male 39%

Female 61%

6 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Customer Satisfaction Rating SEPTA conducted a Customer Satisfaction Survey from April 24, 2018 to May 4, 2018, resulting in 1,542 rider and 400 non-rider interviews (1,942 total respondents). Respondents had the option of taking the survey online or via telephone interview. Riders provided ratings on a scale of 0 – 10 and could provide observations on up to 3 modes taken within the last seven days prior to their interview. A total of 2,840 mode observations were collected. In 2018, the average overall SEPTA Modal Performance Satisfaction rating was a 7.3.

SEPTA Overall 7.3 Broad Street Line 7.3 Market-Frankford Line 7.1 City Bus 7.2 City Trolley 7.2 Suburban Trolley 7.8 Suburban Bus 7.8 Regional Rail 7.4

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Note: In the above chart, “SEPTA Overall” score is weighted by mode ridership in order to be representative of overall rider population. Due to changes in methodology in how the survey was conducted, the results were deemed not comparable to previous years’ results.

Key Regional Transportation Trends

Transit Ridership Total ridership has decreased over the past five years due to a number of factors, such as increased competition, structural changes in ridership patterns, and moderate gas prices.

SEPTA RIDERSHIP

400.0 350.0 300.0 250.0 200.0 150.0 100.0 50.0 0.0 UnlinkedPassenger Trips FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 City Transit 256.1 269.6 273.9 266.3 277.9 282.2 279.3 271.8 270.7 266.9 252.0 245.8 236.5 Suburban 19.4 20.1 20.2 19.7 20.7 21.8 22.0 21.7 22.0 21.5 21.6 22.5 22.2 Regional Rail 31.7 35.5 35.4 35.0 35.4 35.3 36.0 36.7 37.4 37.7 34.7 34.4 34.2 Total 307.2 325.2 329.5 321.0 334.0 339.3 337.3 330.2 330.1 326.1 308.3 302.7 292.9

Note: Suburban includes both Victory and Frontier Transit Divisions. 7 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Driving Rates Automobile use trends underscore the extent to which transit is increasingly becoming a mode of choice for residents of Southeastern Pennsylvania. As transit ridership increases, driving rates decrease. Historically, the City of Philadelphia and Southeastern Pennsylvania driving rates have been roughly one-third and two-thirds the national urban average, respectively. In recent years, as national driving rates have rebounded with improving economic conditions, local driving rates have remained flat. The most recent miles traveled data available is 2018.

Daily Automobile Miles Traveled per Person (1991 -2018) 30 26.4 25.9 26.7 24.5 24.4 25.2 25 23.4 21.5 22.4 21.6 19.6 20 17.9 18.1 16.9 16.2 16.4 16.4 15

10.7 9.7 9.8 10.4

10 9.5 9.7 9.6 DAILY MILES DAILY

5

0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

PHILADELPHIA SOUTHEASTERN PA SOUTH JERSEY US URBAN AVERAGE

8 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Strategic Business Plan SEPTA’s former Strategic Business Plan was adopted by the Board in July 2014 for Fiscal Years 2015 through 2019. The plan positioned SEPTA to evaluate and take advantage of key trends and to meet the region’s evolving transportation needs. As the transportation industry continues to evolve faster than it ever has before, SEPTA is developing a new Strategic Business Plan to actively address these challenges and ensure that transit is the backbone of mobility across the region. The former strategic plan is available at www.septa.org/strategic- plan.

While we progress the next Strategic Business Plan, in the interim we will continue to focus on goals that enhance SEPTA’s value proposition:

SEPTA’s VALUE PROPOSITION

Leaders in Southeastern Pennsylvania agree that mass transit:

Drives the Economy: The five counties of Southeastern Pennsylvania generate 41% of the state’s economic output on 5% of its land, a degree of economic productivity and density that is only possible with high-capacity mass transit.

Supports Equity: Using mass transit is more affordable than driving, saving the average Philadelphia household close to $1,000 in annual cost of living expenses.

Advances Sustainability: Using mass transit reduces carbon emissions from transportation, which at 28% is now the largest single sector source of carbon in the United States; in Philadelphia, transportation only represents 17% of carbon emissions thanks to a culture of low and no-carbon travel, including mass transit.

Promotes Public Health and Safety: Using mass transit is ten times safer than driving and promotes healthy lifestyles that meet physician recommendations for daily physical activity.

9 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Balanced Scorecard of Key Performance Indicators

SEPTA’s former Strategic Business Plan established a “balanced scorecard” approach to performance management. The Key Performance Indicators (KPIs) were designed to guide strategy development based on a quantitative evaluation of progress during plan implementation. The KPIs were carefully selected to represent meaningful measures of achievement towards strategic objectives across all business units.

Progress updates on each KPI are posted quarterly at www.septa.org/strategic-plan.

The balanced scorecard has six key focus areas:  Safety and Security: develop a safety-first culture  Financial Efficiency: responsibly manage resources  The Customer Experience: provide best-in-class transportation services  Resource Management: implement best management practices  State of Good Repair and Reliability: reduce the backlog of capital repair needs  Employee Growth: attract, develop, and retain a diverse, healthy, and versatile workforce

Safety and Security

Goal Statement: to develop a safety-first culture that results in fewer customer and employee incidents.

Employee Lost Time Injuries per 200,000 Work Hours

Injuries causing missed work divided by work hours times 200,000 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Actual Goal Goal Non-Railroad 2.67 2.67 2.27 Railroad 5.13 5.13 5.54 Total 4.0 3.8 3.28 3.51 2.99 Note: KPI reporting metrics were revised in FY 2019 to report lost time injury data by the railroad and non-railroad classification. Based on past trends, the total FY 2020 lost time goal was determined to be 3.51. The FY 2021 goal incorporates the current year’s projections.

EMPLOYEE LOST-TIME PER 200,000 HOURS

7.00

6.00 5.00 5.6 4.00 4.4 4.2 3.00 3.8 3.5 3.0 2.00

LOST LOST TIME RATE 1.00

0.00

2016 2011 2012 2013 2014 2015 2017 2018 2019

2020Goal 2021Goal

10 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Vehicle, Passenger, and Station Incidents

Reported vehicle and passenger incidents per 100,000 miles; reported station incidents per 1,000,000 passenger trips FY 2019 Actual FY 2020 Goal FY 2021 Goal Vehicle Incidents 5.13 5.06 4.87 Passenger Incidents 3.71 3.69 3.72 Station Incidents 0.53 0.46 0.71

Financial Efficiency

Goal Statement: to responsibly manage resources in a manner that provides requisite budget stability to grow the system.

Operating Expenses per Unlinked Passenger Trip Goal: Change in SEPTA is Below Change in Philadelphia CPI-U and Industry CPI-U

Total operating expenses divided by total unlinked passenger trips FY 2018 Actual FY 2019 Actual FY 2020 Goal FY 2021 Goal Operating Expenses $1,371,790 $1,411,366 $1,485,902 $1,530,984 (in thousands) Unlinked Passenger Trips 302,700 292,857 300,117 293,293 (in thousands) Operating Expenses Per $4.53 $4.82 $4.95 $5.22 Unlinked Passenger Trip

OPERATING EXPENSES PER UNLINKED PASSENGER TRIP SEPTA VS. BENCHMARKS $5.50 $5.22 $4.93 $5.00 $4.50 $4.00 $3.87 $3.50

EXPENSE EXPENSE PER TRIP $3.00

$2.50

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SEPTA INDUSTRY PHILA CPI-U 2021Goal 2020Goal

11 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Unlinked Passenger Trips per Capita

Total unlinked passenger trips divided by total five county SEPTA population FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Goal Goal Unlinked Passenger Trips 308,300 302,700 292,857 300,117 293,293 (in thousands) Regional Population 4,119 4,128 4,128* 4,128* 4,128* (in thousands) Unlinked Passenger 74.85 73.33 70.94 72.70 71.05 Trips per Capita *Reflects most recent estimated data available

UNLINKED PASSENGER TRIPS PER CAPITA

120 100 80 83.5 82.9 78.3 76.0 80.9 80.6 60 73.5 71.1 40 20

TRIPS PER SE RESIDENT PA 0

2011 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 2018 2019

2020Goal 2021Goal

• Other Measures o New Route Utilization Criteria – As part of the SEPTA FY 2020 Annual Service Plan, the SEPTA Service Standards and Process was revised to reflect new route utilization criteria. These criteria reflect a peer review of nearly a dozen large transit agencies in North America and metrics from PennDOT’s performance review. While operating ratio data will still be collected and reported upon, the evaluation now focuses on passengers per revenue hour (measuring route productivity) and cost per passenger (measuring route effectiveness). In addition, comparative evaluations will be made based on a new route classification system, segmented into City, Suburban, Arterial, Expressway, Fixed and Special Purpose. Any route falling in the bottom 15th percentile for both passengers per revenue hour and cost per passenger will be identified as candidates for possible evaluation and intervention.

A minimum economic performance standard is used for Regional Rail stations. A station failing to meet this minimum standard will be targeted for evaluation as part of a future Annual Service Plan. The evaluation will consider the station(s) which have not met the minimum economic performance standard.

12 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

The evaluation will consider the station’s line, adjacent stations, available amenities including parking, nearby Regional Rail lines, other local SEPTA transit options, physical infrastructure constraints or opportunities for service, driving and non-driving access to the station and nearby stations, trip-time impacts on the overall line, planned or recent investments and the costs associated with those investments.

• Other Financial and Productivity Goals o Scheduled Service Requirements – 98% or higher of service operating as scheduled. o Accessibility by Elderly and Disabled – Achieve 100% of total requests for ADA trips (639,000 ADA City Division and 303,000 ADA Suburban Division trips). o Vehicle Miles per Employee – 10,593 or more vehicle miles per employee (includes miles in contracted services, Shared Ride, and ADA Paratransit). o Administrative-to-Operating Employee Ratio – 1:20 ratio between administrative employees and operating employees. . Note: Operating employees includes anyone in the Operations, Vehicle Engineering and Maintenance, Transit Police, Engineering Maintenance and Construction, and System Safety Divisions, Revenue Operations, Training and Development, and Customer Experience and Advocacy.

Vehicles per Mechanic

A key staffing measure that establishes goals based on vehicle types reflecting the varying size, complexity, and condition of each fleet FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Actual Goal Goal Bus and Trolleybus 3.1 3.3 3.2 3.0 3.0 City Trolley 1.8 1.9 2.0 1.6 1.6 Market-Frankford Line 3.4 3.5 3.3 3.5 3.5 Broad Street Line 1.9 2.1 2.1 2.5 2.5 Media-Sharon Hill Line 1.5 1.5 1.5 1.3 1.3 Norristown High Speed Line 2.1 2.0 2.1 1.7 1.7 Regional Rail 1.5 1.5 1.5 1.6 1.6

Note: Mechanics assigned to SEPTA’s vehicle overhaul program not included.

The Customer Experience

Goal Statement: provide best-in-class transportation services that meet or exceed customer expectations. Commendations-to-Complaints Ratio

Total customer commendations divided by complaints received through media (mail, e-mail, phone, web) FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Actual Goal Goal Commendations 2,904 3,265 3,249 N/A N/A Complaints 53,216 56,218 57,170 N/A N/A Commendations-to-Complaints Ratio 0.055 0.058 0.0568 0.0570 0.0570

13 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Service Reliability Goal: Varies by Mode

Percentage of arrivals within 5 minutes, 59 seconds of schedule FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Goal Goal City/Suburban Bus Allegheny 77% 79% 79% 80% Callowhill 72% 73% 74% 74% Comly 79% 81% 82% 82% Frankford 78% 82% 81% 82% Midvale 76% 78% 77% 78% Southern 76% 77% 78% 78%

SURFACE Frontier 80% 83% 83% 83% Victory 78% 81% 81% 81% City Trolley 73% 75% 77% 75% Media-Sharon Hill Line 93% 87% 96% 92% Norristown High Speed Line 98% 92% 93% 93%

Broad Street Line 99% 99% 98% 98% Market-Frankford Line 98% 97% 98% 98%

RAIL Regional Rail 87% 89% 90% 90%

Uptime of Mission Critical IT Systems

Percentage of time during which mission critical communication platforms are fully operational FY 2018 FY 2019 FY 2020 FY 2021

Actual Actual Goal Goal

SEPTA.org 99.99% 100% 99.99% 99.99% Real-Time Application 99.40% 99.68% 99.99% 99.99% Program Interface (API)

Communications Activity Index

Composite index of activity on SEPTA’s customer facing electronic communications platforms FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Goal Goal SEPTA.org 1K Page Views 109,225 100,073 N/A N/A @SEPTA_Social Activity 56,941 52,801 N/A N/A Mobile App Downloads 188,149 212,198 N/A N/A Control Center Tweets 43,255 34,775 N/A N/A Communications Activity Index 397,570 399,847 410,000 410,000

14 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

Resource Management

Goal Statement: to implement best management practices that ensure SEPTA remains a sustainable, high-performance and outcome-driven agency.

Procurement Turnaround Time Goal: 21 days for < $25K, 40 days for $25K-$100K, and 0% variance to goal for > $100K

Purchasing process efficiency within categories of procurements by dollar value FY 2018 Actual FY 2019 Actual FY 2020 Goal FY 2021 Goal < $25,000 Procurements 19.0 18.3 21.0 21.0 (in days) $25,000 to $100,000 53.2 46.3 40.0 40.0 Procurements (in days) > $100,000 29.1% 0.5% 0.0% 0.0% Procurements

Carbon Footprint

Emissions Per Passenger Mile Traveled = pounds of carbon dioxide equivalents emitted divided by passenger miles traveled (compared with single-occupancy vehicle) FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Goal Goal Diesel (in gallons) 13,653,993 13,300,565 N/A N/A Electricity (in megawatt hours) 475,214 478,436 N/A N/A Gasoline (in gallons) 2,435,652 2,498,435 N/A N/A Natural Gas (in cubic feet) 2,638,509 2,700,210 N/A N/A Heating Oil (in gallons) 227,002 188,262 N/A N/A Steam (in millions of pounds) 29,768 30,097 N/A N/A Total Emissions (in carbon 806,650,084* 802,588,776 N/A N/A dioxide equivalents) Passenger Miles (in thousands) 1,366,276 1,317,865 N/A N/A Emissions Per Passenger Mile 0.590 0.609 0.575* 0.550 Traveled *Re-stated

Waste Diversion Rate

Diversion Rate = tons of recycled municipal waste divided by tons of total municipal waste FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Goal Goal Recycled Municipal Waste (in tons) 344 360 N/A N/A Other Municipal Waste (in tons) 2,909 2,755 N/A N/A Diversion Rate 10.6% 11.6% 20.0% 20.0% Note: FY 2018 and FY 2019 actual results were lower due in part to stricter recycling standards.

15 | SEPTA FY 2021 Operating Budget Proposal 1. Introduction and Profile

State of Good Repair and Reliability

Goal Statements: to reduce SEPTA’s backlog of capital repair needs in a way that improves safety, reliability, capacity, and the customer experience.

Major Capital Project Deadlines Achieved within 90 Days of Deadline Number of major project deadlines achieved within 90 days divided by total major projects with deadlines FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Goal Goal Major Project Deadlines 66 56 N/A N/A Achieved within 90 Days Total Major Project Deadlines 78 66 N/A N/A Achievement Rate 84.6% 84.8% 80.0% 80.0%

Mean Distance Between Failures Goal: Varies by Mode Fleet miles traveled divided by mechanical failures requiring vehicle to be removed from revenue service FY 2018 FY 2019 FY 2020 FY 2021 Actual Actual Goal Goal City/Suburban Bus

Allegheny 7,525 6,842 7,000 7,100 Callowhill 7,817 7,855 7,500 7,750 Comly 13,867 12,497 12,000 12,000 Frankford 14,702 14,302 14,000 14,250 Midvale 7,184 7,297 7,000 7,250 Southern 7,380 8,128 7,500 7,750

SURFACE Frontier 22,669 23,580 22,000 22,000 Victory 11,462 13,012 13,000 13,000 City Trolley 10,378 12,769 8,000 8,000 Media-Sharon Hill Line 17,139 24,073 20,000 20,000 Norristown High Speed Line 27,215 36,130 35,000 35,000

Broad Street Line 127,360 112,710 130,000 130,000 Market-Frankford Line 103,442 103,056 85,000 85,000

RAIL Regional Rail 41,718 35,269 30,000 30,000

Employee Growth

Goal Statement: to attract, develop, and retain a diverse, healthy, and versatile workforce.

Incremental Improvement from Ongoing Focus on Women and Minority Hiring Efforts

7/1/16 7/1/17 7/1/18 7/1/19 7/1/21 Actual Actual Actual Actual Goal Management (% out of total Minority 44.4% 46.1% 46.9% 49.0% 49.5% management employees) Women 19.0% 19.8% 20.3% 21.1% 21.5% Professional (% out of total Minority 38.1% 39.2% 39.4% 40.2% 40.5% professional employees) Women 35.2% 34.1% 33.9% 33.1% 35.0%

16 | SEPTA FY 2021 Operating Budget Proposal 2. The Budget Process

Budget Development

The first step of the budget development process begins with a meeting attended by the Operating Budget, and Planning and Strategic Initiatives staff in December to discuss the key initiatives for the upcoming fiscal year. These initiatives are incorporated into each division’s goals and funding is provided within the financial constraints determined by the Chief Financial Officer and the Deputy General Manager/Treasurer.

The next major step in the process occurs in January with the preparation of a draft service projection for the following fiscal year. This is a collaborative effort between the Operating Budget and Service Planning Departments and results in a detailed service projection and Authority-wide expense projection by mid-February.

The Operating Budget Department also meets with personnel from each staff and operating department to review specific budget requirements and potential issues for the following fiscal year. Based on these meetings and the Strategic Planning Initiatives, the service projection may then be revised if necessary. Departmental expense levels are set accordingly and preliminary authorization letters and the budget database template are distributed to all departments in March.

Operating and staff department personnel then populate the Corporate Performance Management (CPM) operating budget database template for submission. The Operating Budget Department reviews each submission and recommends corrections or revisions as necessary. The submissions are then compiled and the SEPTA Board is briefed.

Period for Public Comment The Operating Budget Department publishes SEPTA’s Operating Budget Proposal on the Authority’s Website and distributes it publicly in late March, thus beginning the period for public comment, which is open until the beginning of May. SEPTA’s Board Chairman appoints an independent hearing examiner to conduct public hearings in each of the five counties that SEPTA serves. Public hearings are then held in late April to inform the public and to solicit public comment on the proposal. SEPTA staff presents testimony and responds to inquiries from the public.

Note: Due to the State of Emergency declared by both the President of the United States and the Governor of the Commonwealth of Pennsylvania; the public health concerns created by the COVID-19 outbreak (coronavirus); and to support the health, well-being and safety of our community, the Southeastern Pennsylvania Transportation Authority public hearings will be held as virtual meetings that can be accessed via the Authority’s website www.septa.org/notice/.

Adoption The hearing examiner evaluates the SEPTA staff proposal together with public commentary and issues a report to the Board in the beginning of May. Included in this report are recommendations the hearing examiner may choose to make as a result of his review. The SEPTA Board adopts a budget for the upcoming fiscal year at its regular May Board meeting on the fourth Thursday of the month.

Budget Amendment Subsequent amendments to the total budget are handled in the same manner as the annual budget process. That is, budget amendments would be subject to the same three phases of the annual process: budget development, period for public comment and budget adoption.

17 | SEPTA FY 2021 Operating Budget Proposal 2. The Budget Process

Fiscal Year Calendar July 1, 2020 to June 30, 2021

S M T W TH F S S M T W TH F S

JULY 2020 Days JANUARY 2021 Days 1 2 3 4 Cum 27 28 29 30 31 1 2 Cum 5 6 7 8 9 10 11 25 3 4 5 6 7 8 9 28 12 13 14 15 16 17 18 25 10 11 12 13 14 15 16 207 19 20 21 22 23 24 25 17 18 19 20 21 22 23

AUGUST 2020 FEBRUARY 2021 26 27 28 29 30 31 1 24 25 26 27 28 29 30 2 3 4 5 6 7 8 35 31 1 2 3 4 5 6 28 9 10 11 12 13 14 15 60 7 8 9 10 11 12 13 235 16 17 18 19 20 21 22 14 15 16 17 18 19 20 23 24 25 26 27 28 29 SEPTEMBER 2020 MARCH 2021 30 31 1 2 3 4 5 21 22 23 24 25 26 27 6 7 8 9 10 11 12 28 28 1 2 3 4 5 6 35 13 14 15 16 17 18 19 88 7 8 9 10 11 12 13 270 20 21 22 23 24 25 26 14 15 16 17 18 19 20 21 22 23 24 25 26 27 OCTOBER 2020 APRIL 2021 27 28 29 30 1 2 3 28 29 30 31 1 2 3 4 5 6 7 8 9 10 28 4 5 6 7 8 9 10 28 11 12 13 14 15 16 17 116 11 12 13 14 15 16 17 298 18 19 20 21 22 23 24 18 19 20 21 22 23 24

NOVEMBER 2020 MAY 2021 25 26 27 28 29 30 31 25 26 27 28 29 30 1 1 2 3 4 5 6 7 35 2 3 4 5 6 7 8 35 8 9 10 11 12 13 14 151 9 10 11 12 13 14 15 333 15 16 17 18 19 20 21 16 17 18 19 20 21 22 22 23 24 25 26 27 28 23 24 25 26 27 28 29 DECEMBER 2020 JUNE 2021 29 30 1 2 3 4 5 30 31 1 2 3 4 5 6 7 8 9 10 11 12 28 6 7 8 9 10 11 12 32 13 14 15 16 17 18 19 179 13 14 15 16 17 18 19 365 20 21 22 23 24 25 26 20 21 22 23 24 25 26 27 28 29 30

18 | SEPTA FY 2021 Operating Budget Proposal 2. The Budget Process

Key Activities Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 week or period ending date 31 4 11 18 25 1 8 15 22 29 7 14 21 28 4 11 18 25 2 9 16 23 30 30 31 8 SEPTA Management discussion of priorities and 1 Planning and Strategic Initiatives for the upcoming year 2 Schedule Public Hearings

3 Meetings with SEPTA’s operating and Staff departments Develop draft service projection based on current 4 service and proposed FY 2021 levels 5 Develop overall and department projections 6 Budget Department review of submissions 7 Adjust overall and departmental projections 8 Revise Service Projections as necessary 9 Budget Update Presentation to GM Team Distribute preliminary budget authorization letters to all 10 Staff and Operating Departments Budget adjustments are input into Corporate 11 Performance Management (CPM) software 12 Review first draft of FY 2021 Operating Budget Proposal 13 Public Hearing Notice to Press Relations Publish FY 2021 Operating Budget Proposal on SEPTA 14 website www.septa.org Public Hearing Notice published in newspapers and SEPTA website/posted at major transportation 15 centers/Associated Services for the Blind website 16 Prepare Public Hearing Testimony 17 Period for public commentary Public Hearings held in City of Philadelphia and Suburban 18 counties (see note on page 17) 19 Report from the Hearing Examiner to Board 20 Board Budget Committee Briefing 21 Board adopts FY 2021 Operating Budget 22 Final budget adjustments to CPM Publish Final FY 2021 Operating Budget Book on SEPTA 23 website

19 | SEPTA FY 2021 Operating Budget Proposal 3. Fiscal Year 2021 Assumptions and Consolidated Budget

This document presents the Fiscal Year 2021 Operating Budget Proposal. In section 6, Fiscal Year 2019 actual results and Fiscal Year 2020 budget are also presented for comparison.

Service The Fiscal Year 2021 Operating Budget of $1.53 billion in operating expenses assumes transportation service levels will remain generally consistent with Fiscal Year 2020.

Revenue Operating Revenue for Fiscal Year 2021 is projected to increase $13.9 million or 2.6% higher than the current year budget driven by higher passenger revenue. The passenger revenue increase includes a scheduled fare increase for Fiscal Year 2021 and assumes ridership levels to be consistent with the Fiscal Year 2020 projections. Other revenue is expected to increase 1.8% due to higher advertising and shared ride program income offset by lower investment returns. The Authority will continue to aggressively pursue additional sources of non-farebox revenue such as increased advertising and real estate rentals.

Expenses Fiscal Year 2021 expenses total $1.53 billion. The Fiscal Year 2021 budget expense growth of 3.0% is primarily driven by labor, an increase in Amtrak trackage access costs, and higher third party contract service costs.

State and Local Subsidy Fiscal Year 2020 state and local subsidies include a grant from the Pennsylvania Public Transportation Trust Fund. Act 44 of 2007 established the trust fund and Act 89 of 2013 amended Act 44. These acts dedicate state funding for public transportation agencies across the Commonwealth of Pennsylvania. Trust fund grants are required to be matched locally at 15%. Total projected State Operating Subsidy for FY 2021 is $736.8 million with a Local Match of $110.5 million.

The Commonwealth and counties also provide a 20% match of $11.8 million on federal subsidies received to fund Amtrak trackage lease expenses and certain debt service payments. Additionally, $1.0 million of funds are provided for lease expenses for copiers and communications antenna towers. Funding of $30.7 million is also provided by the Commonwealth for Debt Service with a Local Match of $1.0 million provided by the five counties.

Federal Subsidy Federal Subsidy includes Federal Preventive Maintenance funds of $36.6 million, Federal Capital Lease Subsidy of $47.3 million, and Capital Debt Service of $9.1 million.

20 | SEPTA FY 2021 Operating Budget Proposal 3. Fiscal Year 2021 Assumptions and Consolidated Budget

FY 2021 Amounts in Thousands ('000) Proposal

REVENUE Passenger Revenue $ 480,574 Shared Ride Program 16,250 Other Income 42,188 Investment Income 2,756

TOTAL OPERATING REVENUE $ 541,768

EXPENSES Labor and Fringe Benefits $ 1,088,773 Material and Services 331,432 Injury and Damage Claims 24,711 Propulsion Power 27,313 Fuel 26,026 Vehicle and Facility Rentals 8,854

OPERATING EXPENSE $ 1,507,109

Depreciation/Contributed Capital $ 23,875

TOTAL EXPENSES $ 1,530,984

DEFICIT BEFORE SUBSIDY $ (989,216)

OPERATING SUBSIDY Federal $ 93,028 State 779,377 Local 112,451 Other 4,360

TOTAL SUBSIDY $ 989,216

SURPLUS/(DEFICIT) $ -

21 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

FINANCIAL PLANNING POLICIES

Balanced Budget The SEPTA Board adopts a balanced budget, or short-term operating spending plan, before the start of each fiscal year in accordance with the enabling legislation of the Commonwealth of Pennsylvania. A balanced budget is one in which expected operating revenues and subsidies equal expected operating expenses. When a deviation from a balanced budget is foreseen or occurs, this is reported as an operating surplus or deficit.

Fiscal Year The Authority’s budget is prepared on a fiscal year basis, beginning July 1 and ending June 30, which is consistent with the financial statements.

Basis of Financial Reporting and Budgeting The Authority's annual financial statements are prepared using the economic resources measurement focus and the accrual basis in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. Revenues are recognized in the period in which they are earned and expenses are recognized in the period in which they are incurred. The Authority distinguishes operating revenues and expenses from non-operating items in the preparation of its financial statements. Operating revenues and expenses generally result from the Authority's principal operation of providing passenger transportation service. The principal operating revenues are passenger fares and the principal operating expenses are related to the delivery of passenger transportation.

The budget is prepared on a similar basis as the annual financial statements, with the following exceptions:

 The budget includes depreciation net of amortization of contributed capital, while the annual financial statements report gross depreciation. Amortization of contributed capital has been replaced in the annual financial statements by capital grant funding.

 The budget includes a resultant Surplus or Deficit, while the annual financial statement reports a Change in Net Position.

 The budget includes investment income in operating revenue, while the annual financial statements treat this item, and all other subsidies, as non-operating. Conversely, route guarantees classified as operating revenue commencing in Fiscal Year 2013 in the annual financial statements continue to be classified as an operating subsidy within the budget. Additionally, interest expense is treated as non-operating in the annual financial statements.  The net actuarially determined other post-employment benefit (OPEB) obligation recognized under Governmental Accounting Standards Board (GASB) Statement No. 45 in 2008, which was replaced by GASB 75 and implemented by the Authority in Fiscal Year 2018, has been excluded from budgeted expenses. The expense impact of the annual unfunded pension liability change under GASB 68, implemented by the Authority in Fiscal Year 2015, is also excluded from budgeted expenses. Such costs are included in operating expenses in the annual financial statements. The OPEB is funded and budgeted on a pay-as-you-go basis, whereas pensions are funded and budgeted based on actuarially determined contributions calculated by an independent actuary. 22 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

Long-Range Planning SEPTA continually assesses the consequences of national, state, and local demographic, economic, travel, and development trends for SEPTA’s current and future operations, services, and capital projects. This assessment includes the evaluation of current and potential service levels in accordance with SEPTA’s Annual Service Plan and the City Transit, Suburban Transit, and Regional Rail Service Standards and Processes. This assessment forms the backdrop for SEPTA’s long-range planning and the basis for the five-year financial projections, which are included in the adopted budget for each fiscal year.

The five-year financial projection includes fare increases every three years and SEPTA anticipates the next fare increase will occur in Fiscal Year 2024. This, along with prudent oversight of expenditures, will facilitate balanced budgets in future years.

Asset Management SEPTA has established an internal control structure to ensure that assets are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP). The Procurement, Supply Chain Management and Disadvantaged Business Enterprise Division is responsible for the purchase, lease, sale, and disposal of parts, equipment, supplies, repairs, and services utilized by the Authority. This includes the coordination and enforcement of federal, state, and local funding agency regulations for all approved capital expenditures. The principal areas of responsibility include compliance and support services, contract administration, purchasing, resource control, and production control. The specific function of this group is further defined in the departmental section of this budget document.

REVENUE POLICIES

Revenue Diversification The Authority continues to explore areas for revenue diversification and enhancement to supplement passenger revenue and subsidies. Such enhancements shall include, but not be limited to, developing new business and community partnerships, expanding the advertising program, selling naming rights of transit stations, identifying opportunities to serve new markets, and pursuing parking initiatives to increase ridership and parking revenue.

Fees and Charges The Authority’s fare structure has been implemented in accordance with legislation established by the Legislature of the Commonwealth of Pennsylvania and applicable federal legislation. Changes to SEPTA’s fare structure are subject to the guidelines established by this legislation, including a public hearing process.

One-time Revenues The Authority has adopted a policy whereby it does not rely on one-time revenues to finance ongoing operations.

Unpredictable Revenues There are no major revenue sources that the Authority believes to be unpredictable in nature. The Authority has adopted a policy whereby it does not rely on unpredictable revenues to finance ongoing operations.

23 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

EXPENDITURE POLICIES

Accountability All divisions within SEPTA are expected to adhere to budgeted guidelines. Managers are held accountable for operating within their authorized budget.

The spending plan is based both on an assessment of ongoing needs to maintain existing service levels and to introduce new programs. Due to external constraints on the Authority’s expense growth, expansion is limited to those programs exhibiting the highest degree of cost effectiveness and payback in future economies. Budgeting is done at the management center level and managers are provided with detailed variance reports on a monthly basis.

Numerous financial safeguards and controls are in place throughout the Authority to prevent wasteful or unnecessary spending. The Office of Innovation Department conducts assessments of various SEPTA operations and will recommend structural and process changes when deemed appropriate to ensure SEPTA operates as efficiently as possible. In addition, the Authority’s Internal Audit Department and numerous outside agencies, many of whom supply SEPTA with funding, regularly audit the Authority.

The Authority has established a policy of comparing actual expenditures to budget on a monthly basis for both operating and capital expenditures. For capital expenditures, this reporting is handled by the Project Control Department of the Engineering, Maintenance & Construction Division. For operating expenditures, reporting is handled jointly by the Operating Budget and General Accounting Departments of the Finance Division. In addition, each operating and staff department is responsible for periodic reporting and analysis of expenditures. Actions to bring the budget into balance are implemented by the General Manager, with input from staff. Actions such as fare increases or significant service changes require Board approval.

Service Stabilization Accounts The Authority has adopted a policy to maintain a prudent level of financial resources to protect against the need to reduce service levels or increase fares due to revenue/subsidy shortfalls and/or unanticipated one-time expenditures.

DESCRIPTION OF EXISTING DEBT AND DEBT SERVICE POLICIES

Revenue Refunding Bonds The Revenue Refunding Bonds are limited obligations of the Authority and the principal and interest thereon are payable solely from the revenues received by the Authority from the Pennsylvania Consolidated Statutes, including all moneys distributed to the Authority from the Public Transportation Assistance (PTA) Fund created under Article XXIII of the Pennsylvania Tax Reform Code of 1971, as amended.

On July 18, 2007, the Governor of the Commonwealth of Pennsylvania signed into law Act No. 2007 – 44 (“Act 44”), which, effective July 1, 2007, among other things, (a) repealed 74 Pa C.S. Ch. 13 (which included Section 1310); and (b) provides, in pertinent part that, notwithstanding such repeal, (i) the PTA Fund shall continue to receive the revenue the PTA Fund was entitled to receive on June 30, 2007, (ii) despite the repeal of 74 Pa. C.S. Ch. 13 and, in particular, Section 1310, transit entities that have outstanding obligations shall continue to receive money from the PTA Fund calculated and paid in the same manner as was provided on June 30, 2007, and (iii) money remaining in the PTA Fund after amounts are disbursed as described in (ii) above shall be transferred monthly to the Public Transportation Trust Fund established under 74 Pa. C.S. Ch. 1506.

24 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

The Authority, as a transit entity under Act 44, will continue to receive amounts distributed from the PTA Fund that are calculated and paid in the same manner as was prescribed prior to the repeal of Section 1310.

On November 25, 2013, the Governor of the Commonwealth of Pennsylvania signed into law Act No. 2013 – 89 (“Act 89”), which increased available Capital funding for transportation commencing in FY 2014. Act 89 has no effect on the amounts that the Authority is otherwise entitled to receive under Act 44 for repayment of its Revenue Refunding Bond obligations.

The Authority’s policy is to issue debt periodically to supplement federal and state grants in support of the Authority’s capital plan. There are no requirements to establish legal debt limits.

In March 2007, the Authority issued $131.7 million of Variable Rate Revenue Refunding Bonds, Series of 2007. The net proceeds from the sale of the 2007 Bonds were used to currently refund the Authority’s outstanding Special Revenue Bonds, Series of 1997 and to pay the premium for a debt service reserve fund insurance policy. The net proceeds of the 1997 bonds had been used to reimburse the Authority for a portion of the costs of certain capital projects; refund certain leases entered into by the Authority for a building and related equipment; pay the costs of certain capital projects and pay the premium for a debt service reserve fund insurance policy. In December 2012, the Authority converted the $97.95 million remaining outstanding principal amount of the 2007 bonds from the Daily Rate Mode to the Indexed Mode.

In October 2010, the Authority issued $222.5 million Revenue Refunding Bonds, Series of 2010 due in varying amounts through 2028, with annual interest rates ranging from 2% to 5%. The net proceeds from the sale of the 2010 Bonds, together with other funds of the Authority, were used to (a) currently refund the outstanding principal amount of the 1999 Special Revenue Bonds, Series A and Series B, (b) fund the termination payments and accrued amounts payable in connection with the termination of certain swap agreements and, (c) fund certain costs and expenses incurred in connection with the issuance and sale of the 2010 Bonds. The net proceeds of the 1999 Bonds had been used to finance a portion of the Market-Frankford subway-elevated line vehicle acquisition program; refinance a bridge loan for payment of a portion of the vehicle acquisition program; refund $73.2 million of the 1995A Bonds; reimburse the Authority for a portion of the costs of certain capital projects and pay a portion of the premium for a debt service reserve fund insurance policy.

On October 11, 2017, the Authority issued $59.97 million of Revenue Refunding Bonds, Series 2017 (the “2017 Bonds”). The 2017 Bonds are due in varying amounts with maturity dates of March 1, 2021 through and including March 1, 2028. The 2017 Bonds were issued at a premium and have yields ranging between 1.25% and 2.3%, and bear a 5% annual interest rate. The proceeds from the sale of the 2017 Bonds in the amount of $71.88 million were used to (a) advance refund a portion of the Authority’s Revenue Refunding Bonds, Series of 2010 (“Refunded 2010 Bonds”) in the aggregate principal amount of $65.84 million, and (b) fund certain costs and expenses incurred by the Authority in connection with the issuance and sale of the 2017 Bonds. Concurrently with the issuance of the 2017 Bonds, a portion of the proceeds along with other available moneys of the Authority, were irrevocably deposited into an escrow account pursuant to the terms of an Escrow Agreement and invested in Government Obligations, the maturing principal of and interest on which will be sufficient to pay the interest and principal on the Refunded 2010 Bonds as such payments become due. Upon the deposit of the funds for the advance refunding of the Refunded 2010 Bonds pursuant to the terms of the Escrow Agreement, the Refunded 2010 Bonds were deemed to no longer be outstanding under the Indenture.

25 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

On December 5, 2019, the Authority issued $17.825 million of Revenue Refunding Bonds, Series of 2019 (the “2019 Bonds”). The 2019 bonds are due in varying amounts with maturity dates of March 1, 2020 through and including March 1, 2028. The 2019 Bonds were issued at a premium and have yields ranging between 1.21% and 1.67%, and bear annual interest rates ranging from 3% to 5%. The proceeds from the sale of the 2019 Bonds in the amount of $20.58 million were used to (a) refund a portion of the Authority’s Revenue Refunding Bonds, Series of 2010 (“Refunded 2010 Bonds”) in the aggregate principal amount of $19.84 million, and (b) fund certain costs and expenses incurred by the Authority in connection with the issuance and sale of the 2019 Bonds. Concurrently with the issuance of the 2019 Bonds, a portion of the proceeds along with other available moneys of the Authority, were irrevocably deposited into an escrow account pursuant to the terms of an Escrow Agreement and invested in Government Obligations, the maturing principal of and interest on which will be sufficient to pay the interest and principal on the Refunded 2010 Bonds as such payments become due. Upon the deposit of the funds for the current refunding of the Refunded 2010 Bonds pursuant to the terms of the Escrow Agreement, the Refunded 2010 Bonds were deemed to no longer be outstanding under the Indenture.

Capital Grant Receipts Bonds On August 16, 2011, the Authority issued $201.6 million of Capital Grant Receipts Bonds, Series 2011 due in varying amounts through 2029 with annual interest rates ranging from 3% to 5%. The net proceeds from the sale of the 2011 Capital Grant Receipts Bonds were used to (a) finance the acquisition of 116 Silverliner V Regional Railcars, (b) finance the rehabilitation of Wayne Junction Intermodal Facility, (c) fund a deposit to the Debt Service Reserve Fund, and (d) fund certain costs and expenses in connection with the issuance and sale of the 2011 Bonds.

The Capital Grant Receipts Bonds, Series 2011 are limited obligations of the Authority and are payable solely from and secured solely by (I) all amounts received by the Authority from the “Grant Receipts”, (II) amounts on deposit in certain funds and accounts established under the Indenture, including investment earnings thereon, and (III) any and all other moneys and securities furnished from time to time to the Trustee by the Authority. Grant Receipts consist of all amounts received by the Authority after the date of issuance of the 2011 Bonds from its share of FTA Section 5337 State of Good Repair Funding, and for each Federal Fiscal Year thereafter. FTA Section 5337 State of Good Repair Funding is the successor to FTA Section 5309 Fixed Guideway Modernization Formula Funding.

On October 19, 2017, the Authority issued $102.30 million of Capital Grant Receipts Refunding Bonds, Series 2017 (Federal Transit Administration Section 5337 State of Good Repair Formula Program Funds), (the “2017 CGR Bonds”). The 2017 CGR Bonds are due in varying amounts with maturity dates of June 1, 2018, and June 1, 2022 through and including June 1, 2029. The 2017 CGR Bonds were issued with a premium and have yields ranging between 1.20% and 2.51%, and bear a 5% annual interest rate. The proceeds from the sale of the 2017 CGR Bonds in the amount of $123.07 million, together with other available moneys of the Authority, were used to (a) advance refund a portion of the Authority’s Capital Grant Receipts Bonds, Series 2011 (Federal Transit Administration Section 5309 Fixed Guideway Modernization Formula Funds) (the “2011 Bonds”), in the aggregate principal amount of $110.45 million, and (b) fund certain costs and expenses incurred by the Authority in connection with the issuance and sale of the 2017 CGR Bonds. Concurrently with the issuance of the 2017 CGR Bonds, a portion of the proceeds of the 2017 CGR Bonds and other moneys of the Authority were irrevocably deposited into an escrow account pursuant to an Escrow Agreement and invested in Government Obligations, the maturing principal of and interest on which will be sufficient to pay the interest and principal on the Refunded 2011 Bonds as such payments become due. Upon the deposit of the funds for the advance refunding of the Refunded 2011 Bonds pursuant to the terms of the Escrow Agreement, the Refunded 2011 Bonds were deemed to no longer be outstanding under the Indenture. 26 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

EB-5 Loan for New Payment Technology On March 29, 2012, the Authority entered into an agreement with PIDC Regional Center LP XXVIII for a low cost, construction-like loan for an amount not to exceed $175 million to fund the SEPTA Key project. The SEPTA Key project is modernizing the Authority’s fare payment system by allowing direct fare payment with a variety of contactless devices including debit cards, credit cards and smart phones. The loan was made available to SEPTA under guidelines of the U.S. Immigrant Investor Program, sponsored by the United States Citizenship and Immigration Services (USCIS). The loan had three separate tranches of $35 million, $75 million and $65 million and the final drawdown occurred on January 31, 2017. This was an interest only loan with a rate of 1.75% and maturities ranging between 5 and 6 years. The Authority repaid the first tranche principal amount of $35 million that matured on May 30, 2017. The Authority utilized Federal and State Grants with local match to repay the final two tranche amounts of $75 million and $65 million which were due on June 30, 2019 and July 1, 2019, respectively.

Energy Service Company “ESCO” Lease/Purchase Agreement The Authority entered into a Master Equipment Lease/Purchase Agreement with Banc of America Public Capital Corp on November 24, 2015. There are two tranches of debt; tranche 1 has a principal amount of $4.2 million, and an interest rate of 2.37% and a final maturity of June 1, 2026; and tranche 2 has a principal amount of $14.0 million, an interest rate of 3.2%, and a final maturity of June 1, 2033. The installed equipment will serve to reduce the Authority’s energy consumption and the resultant annual operating savings are guaranteed by the ESCO to equal or exceed the annual debt service and other annual project-related expenses throughout the term of the agreement.

The Authority entered into a Master Equipment Lease/Purchase Agreement with PNC Equipment Finance, LLC on November 30, 2016. The total amount financed is $35.9 million, due in varying amounts through March 30, 2034 with an annual nominal interest rate of 2.83%. The equipment leased/purchased included the installation of various energy conservation measures through a third party agreement which will serve to reduce the Authority’s energy consumption and operating expenses. The measures undertaken included the construction of a Combined Heat and Power Plant (“CHP”) that will provide electricity to the Wayne Junction substation and Midvale bus maintenance facility, the installation of interior and exterior LED lighting upgrades to certain Authority owned buildings, and various other work to conserve energy. The resultant annual operating savings are guaranteed by the ESCO to equal or exceed the annual debt service payments and other annual project related expenses throughout the term of the agreement.

The Authority entered into a Master Equipment Lease/Purchase Agreement with Banc of America Public Capital Corp on July 30, 2019. The total amount financed is $12.8 million, due in varying amounts through February 1, 2037 with an annual interest rate of 2.969%. The equipment to be leased/purchased will include various energy conservation measures to reduce energy consumption at SEPTA’s 1234 Market Street Headquarters. The resultant annual operating savings are guaranteed by the ESCO to equal or exceed the annual debt service and other annual project related expenses throughout the term of the agreement.

EB-5 Loan for Equipment and Infrastructure On January 1, 2016, the Authority entered into an EB-5 loan agreement with Delaware Valley Regional Center, LLC, for an amount up to $300 million to partially finance various capital projects. On April 28, 2017, SEPTA borrowed $100 million under this agreement. This is an interest only loan with a rate of 2.0% and a maturity date of July 1, 2022. On November 1, 2017, the Authority borrowed an additional $90 million under this agreement. The loan bears an interest rate of 2.0% and will mature on November 1, 2022. On September 20, 2018 the Authority borrowed an additional $33 million under this agreement. The loan bears an interest 27 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

rate of 2.0% and will mature on September 20, 2023. On March 11, 2019 the Authority borrowed an additional $14 million under this agreement. The loan bears an interest rate of 2.0% and will mature on March 11, 2024. On November 15, 2019 the Authority borrowed an additional $2.5 million under this agreement. The loan bears an interest rate of 2.0% and will mature on November 15, 2024. At this time, no additional EB-5 loan borrowings are anticipated under this agreement.

Revolving Line of Credit Agreement On September 1, 2019, the Authority entered into a $100 million Revolving Line of Credit Agreement (“Committed Line of Credit Note”) with PNC Bank, National Association, with an expiration date of August 31, 2020. The Note is unsecured and bears interest at the Daily Libor Rate plus a credit spread. The facility fee associated with the revolving line of credit varies depending upon the amount borrowed and outstanding during the one-year term. As of March 1, 2020, the Authority did not have an outstanding balance related to the Revolving Line of Credit.

Debt Limit The Authority does not have a debt limit, but must demonstrate the ability to repay prior to entering into a loan agreement or issuing bonds.

Debt Service The Authority has three series of Revenue Refunding Bonds (issued in 2007, 2017 and 2019), and two series of Capital Grant Receipts Bonds (issued in 2011 and 2017) currently outstanding. In March 2012, the Authority entered into an EB-5 loan agreement to fund the SEPTA Key Project and in January 2016 entered into a second EB-5 loan agreement to partially finance various capital projects. In November of both 2015 and 2016, and July of 2019, the Authority entered into “ESCO” Lease/Purchase Agreements.

Debt Service Requirements Interest on the Series of 2007, Series of 2017, and Series of 2019 Revenue Refunding Bonds is payable semi-annually on March 1 and September 1, and interest on the Series 2011 and Series 2017 Capital Grant Receipts Bonds is payable semi-annually on December 1 and June 1. The aggregate debt service requirements for the Revenue Refunding Bonds and Capital Grant Receipts Bonds, the ESCO Agreements, and the EB-5 Loans, are summarized in the following tables: Bond Debt Service Requirements (Amounts in Thousands) Fiscal Year Interest* Principal Total 2021 $10,625 $30,920 $41,545 2022 9,080 31,270 40,350 2023 7,487 20,105 27,592 2024 6,503 21,100 27,603 2025 5,448 22,155 27,603 2026 4,340 23,255 27,595 2027 3,177 24,425 27,602 2028 1,956 24,390 26,346 2029 737 14,730 15,467 TOTAL $49,353 $212,350 $261,703 *Interest on the Series 2007 Bonds is a synthetic fixed rate of 4.706%

28 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

ESCO Debt Service Requirements (Amounts in Thousands) Fiscal Year Interest Principal Total 2021 $1,960 $2,950 $4,910 2022 1,680 3,092 4,772 2023 1,588 3,734 5,322 2024 1,479 3,768 5,247 2025 1,368 4,103 5,471 2026 1,248 3,965 5,213 2027 1,136 3,943 5,079 2028 1,022 4,236 5,258 2029 899 4,318 5,217 2030 773 4,510 5,283 2031 642 4,594 5,236 2032 509 5,291 5,800 2033 355 5,281 5,636 2034 210 4,443 4,653 2035 82 963 1,045 2036 53 1,003 1,056 2037 23 1,043 1,066 TOTAL $15,027 $61,237 $76,264

EB-5 Loan Debt Service Requirements (Amounts in Thousands) Fiscal Year Interest Principal Total 2021 $4,790 - $4,790 2022 4,790 - 4,790 2023 1,907 190,000 191,907 2024 468 47,000 47,468 2025 23 2,500 2,523 TOTAL $ 11,978 $ 239,500 $ 251,478

A graph of the Authority’s outstanding debt service requirements is illustrated below:

Outstanding Debt Service Requirements 250,000

200,000

150,000

100,000

50,000

0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Bond Debt Service Requirements ESCO Debt Service Requirements EB-5 Debt Service Requirements *

*The EB-5 Loan for Equipment and Infrastructure matures in Fiscal Year 2023 and the Authority plans to refinance the amount due at this time.

29 | SEPTA FY 2021 Operating Budget Proposal 4. Financial and Budgetary Policies

STATEMENT OF CHANGES IN EQUITY

The comparative fiscal year Statement of Changes in Equity displays the Authority’s change in contributed capital as well as the change in its accumulated operating deficit, including the fiscal year operating financial results on a balanced budget reporting basis. The equity amounts below exclude the post-employment benefit and unfunded pension obligations recognized under GASB 45, 75, and 68, respectively. Operating surpluses are reducing deficits accumulated in prior years.

Statement of Changes in Equity (Amounts in Thousands) FY 2019 FY 2020 FY 2021 Actual Budget Proposal Contributed Capital: Balance at Beginning of Year $ 3,793,831 $ 4,026,572 $ 4,167,599 Capitalized Grant Property 619,586* 538,531 536,817 Capitalized Grant Property - Retirements (109,937) (48,850) (43,198) Amortization (386,845) (397,206) (424,375) Amortization - Retirements 109,937 48,552 42,934 Contributed Capital Balance at End of Year $ 4,026,572 $ 4,167,599 $ 4,279,777 Operating Surplus/(Deficit): Accumulated Operating Deficit, Beginning of Year $ (184,134) $ (182,054) $ (182,054) Operating Surplus 328 - - Unrealized Investment Gain/(Loss) 1,752 - - Operating Surplus/(Deficit) After Unrealized Investment Gain/(Loss) $ 2,080 $ - $ -

Accumulated Operating Deficit, End of Year $ (182,054) $ (182,054) $ (182,054)

Total Equity $ 3,844,518 $ 3,985,545 $ 4,097,723

*Re-stated

30 | SEPTA FY 2021 Operating Budget Proposal

5. Organizational Structure

The Pennsylvania General Assembly established the Southeastern Pennsylvania Transportation Authority (SEPTA) on February 18, 1964 to provide public transit services for Bucks, Chester, Delaware, Montgomery, and Philadelphia Counties. Over the years, SEPTA acquired the assets of several private transportation operators to form four operating divisions. This distinction permits the efficient implementation of various collective bargaining agreements and the computation of local subsidies. Although the revenue and costs are logically accounted for separately, the operating and staff departments exist in a matrix structure and function as a cohesive unit beneath the following four broad operating divisions:

City Transit Victory Frontier Regional Division Division Division Rail Division

79 Bus 20 Bus 26 Bus 13 Regional Routes Routes Routes Rail Lines

2 Subway- 1 High Elevated Speed Line Lines

6 Light Rail 2 Light Rail (Trolley) (Trolley) Lines Lines

3 Trackless Trolley Lines

City Transit Division SEPTA acquired the assets of the former Philadelphia Transportation Company in 1968, forming the current City Transit Division. The City Transit Division, which primarily serves the City of Philadelphia, operates 79 bus routes, 6 light rail (trolley) lines, 3 trackless trolley lines, and 2 subway-elevated lines.

Victory Division The Victory Division, formerly known as the Philadelphia Suburban Transportation Company, serves Chester, Delaware, and Montgomery Counties. Also known as Red Arrow until 1970, SEPTA’s Victory Division is comprised of 20 bus routes, 2 light rail (trolley) lines, and 1 high speed line.

Frontier Division The Frontier Division consists of 26 bus routes serving Bucks, Chester, and Montgomery Counties. These routes formerly came under the auspices of several private operators including Schuylkill Valley Lines, which was acquired in 1976.

Regional Rail Division The Regional Rail Division serves the City of Philadelphia, as well as Bucks, Chester, Delaware, and Montgomery Counties, with service to Newark, Delaware, and Trenton and West Trenton, New Jersey. The infrastructure and assets of regional rail were previously operated by the Pennsylvania and Reading Railroads. These regional rail lines were operated by Conrail from 1976 through 1982, and acquired by SEPTA in 1983.

31 | SEPTA FY 2021 Operating Budget Proposal

5. Organizational Structure

SEPTA BOARD SEPTA is governed by a Board consisting of fifteen Directors. The City of Philadelphia and the Counties of Bucks, Chester, Delaware, and Montgomery each appoint two members to the Board. The Pennsylvania Senate and House collectively appoint four members and the Governor of Pennsylvania appoints one representative.

OPERATING AND STAFF DEPARTMENTS

Corporate Staff Audit and Investigative Services Board Staff Internal Audit Executive Staff Office of the Inspector General Office of the General Manager Deputy General Manager/Treasurer Admin. Communications Customer Experience and Advocacy Communications and Website Management Administration Fulfillment Services Customer Development and Advocacy Graphic Services Consumer Market Research and Analysis Print Services and Sign Shops Customer Service Center Employee Development/Relations Engineering, Maintenance and Administration Construction Career Resource Connection Administration and Finance EEO/AA and Employee Relations Bridges and Buildings Labor Relations Project Compliance Training and Development Project Control Project Development Real Estate Maintenance of Way Support Services Finance Human Resources Finance Administration Administration Capital Budget and Grant Development Employee Medical Services Financial Services Compensation/HRIS General Accounting Employee Business Services Operating Budget Recruitment Payroll Employee Benefit Services Revenue, Ridership, Advertising and Sales Information Technology New Payment Technologies Administration Emerging and Specialty Technologies Project Services Technical Services Network Services Office of General Counsel Operations Administration Administration and Analysis Claims Customized Community Transportation Corporate and Business Operations Rail Transportation – Regional Rail Video and Intake Operations AGM Staff Litigation Planning and Coordination Corporate Litigation Control Center - Transit Risk Management Rail Transportation – Subway/Elevated Surface Transportation 32 | SEPTA FY 2021 Operating Budget Proposal

5. Organizational Structure

OPERATING AND STAFF DEPARTMENTS

Planning and Strategic Initiatives Procurement, Supply Chain and Administration Disadvantaged Business Enterprise Office of Innovation (DBE) Service Planning Administration Strategic Planning Contract Administration Disadvantaged Business Enterprise Program Procurement and Supply Chain Management Public and Government Affairs Revenue Operations Public and Government Affairs Administration Administration Revenue Transportation and Collections Media Relations Revenue Services Marketing and Promotions Revenue Equipment Maintenance Government and Community Relations Revenue Compliance Railroad Revenue and Parking System Safety Transit Police System Safety Administration Construction Safety Office of Professional Responsibility Patrol Bureau Special Operations Bureau

Vehicle Engineering and Maintenance Administration Bus Vehicle Engineering Rail Vehicle Engineering Vehicle Equipment Maintenance

33 | SEPTA FY 2021 Operating Budget Proposal

5. Organizational Structure Corporate Team Organization Chart (To Assistant General Manager level)

Audit and Investigative Services Robert J. Marron

Employee Development and Relations Stephanie K. Deiger

Deputy General Manager/ Finance Treasurer Thomas J. McFadden Richard G. Burnfield

Human Resources SEPTA Jacob T. Aufschauer

Board Chairman Procurement, Supply Chain and DBE Pasquale T. H. Andy Abdallah Deon, Sr. Customer Experience and Advocacy Kim S. Heinle

Public and Government Affairs Francis E. Kelly SEPTA

General Office of General Counsel Manager Gino J. Benedetti

Leslie S. Richards Planning and Strategic Initiatives Jody Holton

System Safety James W. Fox

Deputy General Manager Operations Robert L. Lund Scott A. Sauer

34 | SEPTA FY 2021 Operating Budget Proposal Consolidated 6. Three Year Comparison Fiscal Years 2019-2021

FY 2021 FY 2019 FY 2020 FY 2021 versus Amounts in thousands ('000) Actual Budget Proposal FY 2020 REVENUE Passenger Revenue $ 457,709 $ 467,700 $ 480,574 $ 12,874 Shared Ride Program 15,992 15,822 16,250 428 Other Income 41,017 40,688 42,188 1,500 Investment Income 3,229 3,620 2,756 (864)

TOTAL OPERATING REVENUE $ 517,947 $ 527,830 $ 541,768 $ 13,938

EXPENSES Labor and Fringe Benefits $ 1,008,830 $ 1,058,895 $ 1,088,773 $ 29,878 Materials and Services 301,920 314,403 331,432 17,029 Injury and Damage Claims 16,490 23,720 24,711 991 Propulsion Power 29,807 29,505 27,313 (2,192) Fuel 27,816 29,970 26,026 (3,944) Vehicle and Facility Rental 6,376 6,366 8,854 2,488

OPERATING EXPENSE $ 1,391,239 $ 1,462,859 $ 1,507,109 $ 44,250

Depreciation/Contributed Capital $ 20,127 $ 23,043 $ 23,875 $ 832

TOTAL EXPENSES $ 1,411,366 $ 1,485,902 $ 1,530,984 $ 45,082

DEFICIT BEFORE SUBSIDY $ (893,419) $ (958,072) $ (989,216) $ (31,144)

OPERATING SUBSIDY Federal $ 83,409 $ 82,987 $ 93,028 $ 10,041 State 705,688 762,270 779,842 17,572 Local 100,665 109,195 111,986 2,791 Other 3,985 3,620 4,360 740

TOTAL SUBSIDY $ 893,747 $ 958,072 $ 989,216 $ 31,144

SURPLUS/(DEFICIT) $ 328 $ - $ - $ -

35 | SEPTA FY 2021 Operating Budget Proposal City Transit Division 6. Three Year Comparison Fiscal Years 2019-2021

FY 2021 FY 2019 FY 2020 FY 2021 versus Amounts in thousands ('000) Actual Budget Proposal FY 2020 REVENUE Passenger Revenue $ 284,823 $ 292,177 $ 295,056 $ 2,879 Shared Ride Program 15,992 15,822 16,250 428 Other Income 24,417 23,185 24,898 1,713 Investment Income 1,675 1,868 1,428 (440)

TOTAL OPERATING REVENUE $ 326,907 $ 333,052 $ 337,632 $ 4,580

EXPENSES Labor and Fringe Benefits $ 678,376 $ 723,539 $ 736,814 $ 13,275 Materials and Services 158,741 163,913 167,739 3,826 Injury and Damage Claims 9,355 17,940 17,937 (3) Propulsion Power 11,128 12,080 10,394 (1,686) Fuel 21,380 23,127 19,980 (3,147) Vehicle and Facility Rental 4,908 3,948 5,933 1,985

OPERATING EXPENSE $ 883,888 $ 944,547 $ 958,797 $ 14,250

Depreciation/Contributed Capital $ 14,222 $ 16,043 $ 17,454 $ 1,411

TOTAL EXPENSES $ 898,110 $ 960,590 $ 976,251 $ 15,661

DEFICIT BEFORE SUBSIDY $ (571,203) $ (627,538) $ (638,619) $ (11,081)

OPERATING SUBSIDY Federal $ 26,097 $ 25,544 $ 30,076 $ 4,532 State 475,722 524,967 529,972 5,005 Local 68,269 75,697 77,216 1,519 Other 1,338 1,330 1,355 25

TOTAL SUBSIDY $ 571,426 $ 627,538 $ 638,619 $ 11,081

SURPLUS/(DEFICIT) $ 223 $ - $ - $ -

36 | SEPTA FY 2021 Operating Budget Proposal Victory Division 6. Three Year Comparison Fiscal Years 2019-2021

FY 2021 FY 2019 FY 2020 FY 2021 versus Amounts in thousands ('000) Actual Budget Proposal FY 2020 REVENUE Passenger Revenue $ 25,077 $ 25,594 $ 25,982 $ 388 Shared Ride Program - - - - Other Income 2,930 2,925 3,321 396 Investment Income 57 88 64 (24)

TOTAL OPERATING REVENUE $ 28,064 $ 28,607 $ 29,367 $ 760

EXPENSES Labor and Fringe Benefits $ 75,848 $ 77,996 $ 81,943 $ 3,947 Materials and Services 20,294 21,301 22,049 748 Injury and Damage Claims 661 889 1,094 205 Propulsion Power 1,256 1,250 1,233 (17) Fuel 3,582 3,691 3,311 (380) Vehicle and Facility Rental 179 187 263 76

OPERATING EXPENSE $ 101,820 $ 105,314 $ 109,893 $ 4,579

Depreciation/Contributed Capital $ 222 $ 241 $ 313 $ 72

TOTAL EXPENSES $ 102,042 $ 105,555 $ 110,206 $ 4,651

DEFICIT BEFORE SUBSIDY $ (73,978) $ (76,948) $ (80,839) $ (3,891)

OPERATING SUBSIDY Federal $ 3,393 $ 3,227 $ 3,344 $ 117 State 61,417 64,116 67,396 3,280 Local 9,199 9,605 10,099 494 Other - - - -

TOTAL SUBSIDY $ 74,009 $ 76,948 $ 80,839 $ 3,891

SURPLUS/(DEFICIT) $ 31 $ - $ - $ -

37 | SEPTA FY 2021 Operating Budget Proposal Frontier Division 6. Three Year Comparison Fiscal Years 2019-2021

FY 2021 FY 2019 FY 2020 FY 2021 versus Amounts in thousands ('000) Actual Budget Proposal FY 2020 REVENUE Passenger Revenue $ 6,443 $ 6,670 $ 6,616 $ (54) Shared Ride Program - - - - Other Income 764 901 978 77 Investment Income 17 26 18 (8)

TOTAL OPERATING REVENUE $ 7,224 $ 7,597 $ 7,612 $ 15

EXPENSES Labor and Fringe Benefits $ 27,659 $ 28,390 $ 29,575 $ 1,185 Materials and Services 4,385 4,709 4,940 231 Injury and Damage Claims 120 319 340 21 Propulsion Power - - - - Fuel 2,371 2,524 2,189 (335) Vehicle and Facility Rental 57 60 83 23

OPERATING EXPENSE $ 34,592 $ 36,002 $ 37,127 $ 1,125

Depreciation/Contributed Capital $ 52 $ 54 $ 72 $ 18

TOTAL EXPENSES $ 34,644 $ 36,056 $ 37,199 $ 1,143

DEFICIT BEFORE SUBSIDY $ (27,420) $ (28,459) $ (29,587) $ (1,128)

OPERATING SUBSIDY Federal $ 1,225 $ 1,168 $ 1,197 $ 29 State 22,236 23,178 24,119 941 Local 3,332 3,473 3,616 143 Other 638 640 655 15

TOTAL SUBSIDY $ 27,431 $ 28,459 $ 29,587 $ 1,128

SURPLUS/(DEFICIT) $ 11 $ - $ - $ -

38 | SEPTA FY 2021 Operating Budget Proposal Regional Rail Division 6. Three Year Comparison Fiscal Years 2019-2021

FY 2021 FY 2019 FY 2020 FY 2021 versus Amounts in thousands ('000) Actual Budget Proposal FY 2020 REVENUE Passenger Revenue $ 141,366 $ 143,259 $ 152,920 $ 9,661 Shared Ride Program - - - - Other Income 12,906 13,677 12,991 (686) Investment Income 1,480 1,638 1,246 (392)

TOTAL OPERATING REVENUE $ 155,752 $ 158,574 $ 167,157 $ 8,583

EXPENSES Labor and Fringe Benefits $ 226,947 $ 228,970 $ 240,441 $ 11,471 Materials and Services 118,500 124,480 136,704 12,224 Injury and Damage Claims 6,354 4,572 5,340 768 Propulsion Power 17,423 16,175 15,686 (489) Fuel 483 628 546 (82) Vehicle and Facility Rental 1,232 2,171 2,575 $ 404

OPERATING EXPENSE $ 370,939 $ 376,996 $ 401,292 $ 24,296

Depreciation/Contributed Capital $ 5,631 $ 6,705 $ 6,036 $ (669)

TOTAL EXPENSES $ 376,570 $ 383,701 $ 407,328 $ 23,627

DEFICIT BEFORE SUBSIDY $ (220,818) $ (225,127) $ (240,171) $ (15,044)

OPERATING SUBSIDY Federal $ 52,695 $ 53,048 $ 58,411 $ 5,363 State 146,313 150,009 158,355 8,346 Local 19,864 20,420 21,055 635 Other 2,009 1,650 2,350 700

TOTAL SUBSIDY $ 220,881 $ 225,127 $ 240,171 $ 15,044

SURPLUS/(DEFICIT) $ 63 $ - $ - $ -

39 | SEPTA FY 2021 Operating Budget Proposal 7. Financial Projections Summary of Assumptions

Passenger Revenue Revenue is expected to grow by 1% per year, except in Fiscal Year 2024, when the next scheduled fare increase will take effect.

Shared Ride Program This revenue category is forecasted to grow by approximately 1% each year over the five-year period.

Other Income The Other Income category is expected to increase by 1% annually when compared to the Fiscal Year 2021 budget. Income that is generated primarily from investments, real estate rentals, scrap sales, property damage recoveries, advertising, and parking lot fees are reflected in this category.

Expenses The overall expense growth rate is approximately 3% annually with fringe benefits expected to grow at a slightly higher rate due to the increased cost of healthcare. The other expense categories anticipate third party supplier’s price increases.

Subsidy The subsidy categories reflect the anticipated funding levels of the Federal, State, and required local match needed to balance the operating budget in Fiscal Year 2021 and beyond. Due to scheduled fare increases in Fiscal Years 2021 and 2024, the subsidy growth rate is lower in those years as compared to years with no increases.

40 | S E P T A FY 2021 Operating Budget Proposal

7. Financial Projections of Consolidated Budget

Proposal Projection Amounts in thousands ('000) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 fare increase fare increase REVENUE Passenger Revenue $ 480,574 $ 485,380 $ 490,234 $ 515,234 $ 520,386 $ 525,590 Shared Ride Program 16,250 16,413 16,577 16,742 16,910 17,079 Other Income 44,944 45,393 45,847 46,306 46,769 47,237

TOTAL OPERATING REVENUE $ 541,768 $ 547,186 $ 552,658 $ 578,282 $ 584,065 $ 589,906

EXPENSES Labor and Fringe Benefits $ 1,088,773 $ 1,124,230 $ 1,158,028 $ 1,192,943 $ 1,229,017 $ 1,266,293 Materials and Services 331,432 339,718 349,060 358,659 368,522 378,657 Injury and Damage Claims 24,711 25,452 26,216 27,002 27,812 28,647 Propulsion Power 27,313 27,859 28,416 28,985 29,564 30,156 Fuel 26,026 26,807 27,745 28,716 29,721 30,761 Other Expenses (Incl. Depreciation) 32,729 33,384 34,051 34,732 35,427 36,135

TOTAL EXPENSES $ 1,530,984 $ 1,577,450 $ 1,623,516 $ 1,671,037 $ 1,720,063 $ 1,770,649

DEFICIT BEFORE SUBSIDY $ (989,216) $ (1,030,264) $ (1,070,858) $ (1,092,755) $ (1,135,998) $ (1,180,743)

OPERATING SUBSIDY Federal 93,028 93,047 93,804 94,588 95,378 96,337 State 779,842 815,485 848,924 867,281 904,181 942,239 Local 111,986 117,328 123,682 126,394 131,902 137,585 Other 4,360 4,404 4,448 4,492 4,537 4,582

TOTAL SUBSIDY $ 989,216 $ 1,030,264 $ 1,070,858 $ 1,092,755 $ 1,135,998 $ 1,180,743

SURPLUS/(DEFICIT) $ - $ - $ - $ - $ - $ -

41 | S E P T A FY 2021 Operating Budget Proposal 8. Annual Service Plan Overview

Following is a list and descriptions of the projects to be included in SEPTA’s Fiscal Year 2021 Annual Service Plan. The Plan is a one-year plan that identifies new transit services or significant changes to existing services for the following fiscal year.

Proposed revisions to the SEPTA Service Standards and Process are to be discussed.

For Surface Transportation, these changes include further clarification of the standards for evaluating potential routing modifications and requests. The proposed changes support the Surface Transportation Service Development Process.

There are no new route projects for inclusion in the Plan, due to the analysis of the entire SEPTA Bus Network expected to begin during calendar 2020.

The final FY 2021 Annual Service Plan document will include an evaluation of service changes implemented as part of the FY 2019 and 2020 Annual Service Plans.

The following projects are operating under Experimental Order authority and are proposed to be made permanent:

Routes 110, 111, 114 and 117: Changes in Middletown Township, Delaware County to reflect service routings on Baltimore Pike in the Granite Run area.

The Fiscal Year 2021 Annual Service Plan proposal does not include any major reductions in service levels or significant diminishment of transit service.

42 | S E P T A FY 2021 Operating Budget Proposal 8. Revenue Assumptions By Category

SEPTA receives revenue from several different sources. These can generally be categorized as revenues derived from operations and those obtained from government grants. Government operating assistance grants are classified as Operating Subsidy and discussed in the Operating Subsidy Section of this document. Operating Revenue is comprised of four major elements: passenger revenue, shared ride program, other income, and investment income.

Passenger Revenue The Fiscal Year 2021 Operating Budget Proposal for passenger revenue is $480.6 million and assumes a 2.8% growth in revenue from the current year budget driven by a scheduled fare increase. Ridership is expected to remain consistent with current year actual projections.

Shared Ride Program SEPTA assumed responsibility for the operation of the state funded Shared Ride Program in the City of Philadelphia during Fiscal Year 1993. This year, revenue is budgeted at $16.3 million or 2.7% higher than the FY 2020 budget due to a slight increase in program ridership. The program is funded through the State Lottery, funds from the Philadelphia Corporation for the Aging, and Shared Ride fares. In Fiscal Year 2021, the Authority projects a total of 599,000 Shared Ride trips.

Other Income Other income includes real estate rental income, parking lot fees, and advertising income. Total projected revenue for this category is $42.2 million.

Investment Income Investment income is budgeted at $2.8 million for Fiscal Year 2021. Investment income results are correlated directly to financial market conditions and projected fund balances.

43 | S E P T A FY 2021 Operating Budget Proposal 8. Ten Year Revenue Trends

The Authority analyzes a number of factors that affect the Operating Revenue budget. This includes an examination of national, state, and local demographic, economic, travel, and development trends. In addition, SEPTA evaluates current and projected service levels and other factors affecting ridership and revenue levels. Finally, the Authority considers historical trends in major revenue categories, as illustrated in the following charts:

Amounts in Millions

Passenger Revenue

$600

$500

$400

$300

$200

$100

$0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Budget Proposal

Shared Ride Program

$30

$25

$20

$15

$10

$5

$0 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Budget Proposal

Other Income $50 $45 $40 $35 $30 $25 $20 $15 $10 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Budget Proposal

44 | S E P T A FY 2021 Operating Budget Proposal 8. Summary of Operating Revenue

TOTAL OPERATING REVENUE = $541,768 In Thousands

Passenger Revenue $480,574 88.70%

Shared Ride Other Income Program $42,188 $16,250 Investment Income 7.79% 3.00% $2,756 0.51%

45 | S E P T A FY 2021 Operating Budget Proposal 9. Subsidy Allocation and Detail

Introduction Total subsidies in the Fiscal Year 2021 Operating Budget represent $989.2 million and include the following categories: Federal, State, Local, and Other.

Assumptions

Federal The Federal Government's role in providing operating assistance has steadily declined. In Fiscal Year 1980, Federal Subsidy covered 18.8% of SEPTA's operating expenses. For Fiscal Year 2021, the total Federal Subsidy of $93.0 million covers only 6.1% of the total budgeted operating expense. The source of this subsidy is Federal Preventive Maintenance funds in the amount of $36.6 million, Federal Capital Lease Subsidy in the amount of $47.3 million, and Federal Capital Debt Service Subsidy of $9.1 million.

State On July 18, 2007, Act 44 of 2007 was signed into law by former Pennsylvania Governor Ed Rendell, and was intended to provide a long term funding solution for public transportation agencies throughout the Commonwealth of Pennsylvania. This legislation created the Pennsylvania Public Transportation Trust Fund (PTTF) which provides SEPTA and public transportation providers throughout the Commonwealth with dedicated annual funding for operating expenses. The Trust Fund is funded by 4.4% of state sales tax receipts and the proceeds from bonds issued by the Pennsylvania Turnpike Commission.

In November of 2013, the State Legislature passed Act 89. This legislation significantly increased funding for SEPTA’s Capital Program, allowing SEPTA to address its backlog of unfunded capital projects.

SEPTA and other Pennsylvania transit agencies are allocated state funds as determined by the following formula:

State Allocation Formula Allocation Allocation Category Percent Number of Passengers 25% Number of Senior Citizen Passengers 10% Revenue Vehicle Hours 35% Revenue Vehicle Miles 30% Total 100%

Operating assistance is provided through Section 1513 of the Trust Fund. In addition, the Commonwealth of Pennsylvania provides state funds for capital lease costs and debt service. SEPTA’s debt service expenses and some lease costs are funded through the Capital Program of the Pennsylvania Public Transportation Trust Fund. The remaining leases are funded through Federal Capital Lease Subsidy and Federal Capital Debt Service Subsidy.

46 | S E P T A FY 2021 Operating Budget Proposal 9. Subsidy Allocation and Detail

Local The local operating subsidy amount is budgeted at the level of 15% of the operating assistance portion (Section 1513) of the Trust Fund grant. This is a requirement for SEPTA to receive its full allocation from this state grant. The local subsidy requirement for each of SEPTA's funded divisions (City Transit, Victory, Frontier, and Regional Rail) is determined by the relative deficits before subsidy in each division as adjusted for Route Guarantees and Lease and Debt Service payments.

Within each funded division, the percentage of the local subsidy required from each county is shown in the table below:

Local Operating Subsidy by County

City Regional Transit Victory Frontier Rail

Bucks 0.27% 0.00% 37.00% 5.90% Chester 0.00% 2.00% 17.00% 4.30% Delaware 0.00% 86.00% 0.00% 8.80% Montgomery 0.25% 12.00% 46.00% 11.00% Philadelphia 99.48% 0.00% 0.00% 70.00%

Total 100.00% 100.00% 100.00% 100.00%

47 | S E P T A FY 2021 Operating Budget Proposal 9. Subsidy Allocation and Detail

The operating budget also makes an allowance within the standard formula, shown on the previous page, to properly accommodate the four county utilization of SEPTA’s Suburban Paratransit Service operated from the Victory Division. A usage-based allocation formula has been established within the Victory Division for suburban county ADA service. Each suburban county is billed based on the actual ADA Paratransit service used. The prospective utilization for Fiscal Year 2021 is as follows:

Suburban Paratransit Usage by County

Bucks 13% Chester 5% Delaware 58% Montgomery 24% Total 100%

The City of Philadelphia also provides local match for the ADA Paratransit services as part of the City Transit Division match formula.

Route Guarantee Route Guarantee Subsidies are payments made under separate agreements between SEPTA and various local entities to fully fund the deficits generated by service extensions implemented by specific request. The Fiscal Year 2021 Route Guarantee Subsidy in the City Transit Division includes a University City partnership between Penn Health Systems, the University of the Sciences, and Children’s Hospital, which continues the “LUCY” (Loop through University City) circulator.

In the Frontier Division, the Bucks County Transit Improvement Project (TIP) was implemented in Fiscal Year 2001. It represented the restructuring of six routes with funding provided through a separate agreement with the county. Routes 127, 128, 129, and 130 are guaranteed under this agreement.

An agreement with the Delaware Transit Corporation provides for Regional Rail service to Wilmington and Newark, Delaware as an extension of the Wilmington/Newark Line.

48 | S E P T A FY 2021 Operating Budget Proposal 9. Service Stabilization Fund

Prior to passage of Act 44 in July 2007, former Pennsylvania Governor Ed Rendell established the Transportation Funding and Reform Commission. The Commission identified future operating and capital funding needs for highways and transit. Act 44 represented a major milestone for transit funding in the Commonwealth of Pennsylvania. The intent of this legislation was to create a long term funding source which was stable, predictable, and with growth potential.

Until Act 44 passed, the majority of state operating subsidies were subject to the annual budget appropriations process. During the decade prior to Act 44, growth in operating subsidies was very limited. SEPTA, along with all public transit agencies in the Commonwealth, experienced very difficult challenges in balancing their operating budgets. In a number of years, SEPTA proposed significant fare increases and severe service reductions as initial measures to balance the Authority’s budget. These drastic measures were frequently diffused by eleventh hour, one-time actions.

The Act 44 and Act 89 funding programs are intended to provide a long-term funding solution. It is critically important for SEPTA to be prudent with the use of these subsidy funds to ensure that this objective is achieved. The Service Stabilization Fund is necessary to: 1) ensure long- term fiscal stability for SEPTA’s operating budget; 2) prevent a future budget crisis; and 3) maintain service levels. Based on future projected growth in state funding and the projected growth in SEPTA’s operating expenses and revenues, there will be fiscal years in which the growth in expenses will exceed the growth in state funding. In those years, the Service Stabilization Fund will be used to balance the operating budget avoiding substantial fare increases and/or service cuts.

49 | S E P T A FY 2021 Operating Budget Proposal

9. Detail of Subsidies

Amounts in thousands ('000)

City Regional Total Transit Victory Frontier Rail SEPTA

Federal Preventive Maintenance $ 25,347 $ 3,344 $ 1,197 $ 6,712 $ 36,600 Capital Lease Subsidy - - - 47,332 47,332 Debt Service Subsidy 4,729 - - 4,367 9,096

Subtotal Federal $ 30,076 $ 3,344 $ 1,197 $ 58,411 $ 93,028

State Operating Subsidy - (Section 1513) $ 510,256 $ 67,309 $ 24,099 $ 135,125 $ 736,789 Lease Cost Subsidy - (Section 1514) 679 64 20 165 928 Debt Service Subsidy - (Section 1514) 17,893 23 - 10,556 28,472 Match - Capital Lease Subsidy - (Section 1514) - - - 11,452 11,452 Match - Capital Debt Service Subsidy- (Section 1514) 1,144 - - 1,057 2,201 Subtotal State $ 529,972 $ 67,396 $ 24,119 $ 158,355 $ 779,842

Local $ 77,216 $ 10,099 $ 3,616 $ 21,055 $ 111,986 (Please see subsequent pages for Detail by County)

Other - Route Guarantees $ 1,355 $ - $ 655 $ 2,350 $ 4,360

TOTAL SUBSIDY $ 638,619 $ 80,839 $ 29,587 $ 240,171 $ 989,216

50 | S E P T A FY 2021 Operating Budget Proposal

9. Summary of Operating Subsidies

TOTAL SUBSIDIES = $989,216 In Thousands

State $779,842 78.84%

Federal $93,028 9.40%

Local Other $111,986 $4,360 11.32% 0.44%

51 | S E P T A FY 2021 Operating Budget Proposal

9. Detail of Local Subsidies and Other by County

City Regional Total Amounts in thousands ('000) Transit Victory Frontier Rail SEPTA

Base PA Trust Fund Local Match Bucks $ 206 $ - $ 1,337 $ 1,196 $ 2,739 Chester - 162 615 872 1,649 Delaware - 6,940 - 1,784 8,724 Montgomery 191 969 1,663 2,229 5,052 Philadelphia 76,141 - - 14,188 90,329 Subtotal $ 76,538 $ 8,071 $ 3,615 $ 20,269 $ 108,493 Suburban Paratransit Local Match Bucks $ - $ 263 $ - $ - $ 263 Chester - 101 - - 101 Delaware - 1,175 - - 1,175 Montgomery - 486 - - 486 Philadelphia - - - - - Subtotal $ - $ 2,025 $ - $ - $ 2,025 Total Trust Fund Local Subsidy Bucks $ 206 $ 263 $ 1,337 $ 1,196 $ 3,002 Chester - $ 263 $ 615 $ 872 1,750 Delaware - $ 8,115 $ - $ 1,784 9,899 Montgomery $ 191 $ 1,455 $ 1,663 $ 2,229 5,538 Philadelphia $ 76,141 $ - $ - $ 14,188 90,329 Total Trust Fund Local Subsidy $ 76,538 $ 10,096 $ 3,615 $ 20,269 $ 110,518

Local Debt Service Subsidy Bucks $ 2 $ - $ - $ 24 $ 26 Chester - - - 17 17 Delaware - 1 - 35 36 Montgomery 2 - - 44 46 Philadelphia 651 - - 278 929 Subtotal $ 655 $ 1 $ - $ 398 $ 1,054 Local Lease Cost Subsidy Bucks $ - $ - $ - $ 23 $ 23 Chester - - - 17 17 Delaware - 2 - 34 36 Montgomery - - 1 43 44 Philadelphia 23 - - 271 294 Subtotal $ 23 $ 2 $ 1 $ 388 $ 414

Total Debt Service and Lease Subsidy $ 678 $ 3 $ 1 $ 786 $ 1,468

Total Local Subsidy Required $ 77,216 $ 10,099 $ 3,616 $ 21,055 $ 111,986

Total Other Route Guarantees $ 1,355 $ - $ 655 $ 2,350 $ 4,360

52 | S E P T A FY 2021 Operating Budget Proposal 9. Summary of Local Subsidies by County

City Regional Total Amounts in thousands ('000) Transit Victory Frontier Rail SEPTA

Total Local Subsidy Bucks $ 208 $ 263 $ 1,337 $ 1,243 $ 3,051 Chester - 263 615 906 1,784 Delaware - 8,118 - 1,853 9,971 Montgomery 193 1,455 1,664 2,316 5,628 Philadelphia 76,815 - - 14,737 91,552

Total Local Subsidy $ 77,216 $ 10,099 $ 3,616 $ 21,055 $ 111,986

Summary of Local Subsidies By County Total = $111,986 In Thousands

Philadelphia 81.75%

Delaware 8.90%

Montgomery 5.03% Bucks 2.73% Chester 1.59%

The total local subsidy required for the Fiscal Year 2021 Operating Budget is comprised of the following:

Total Trust Fund Local Subsidy (15% Match of Section 1513) $ 110,518

Debt Service Subsidy Local Match 1,054

Lease Cost Subsidy Local Match 414 Total Local Subsidy Required $ 111,986

53 | S E P T A FY 2021 Operating Budget Proposal 10. Expense Assumptions By Category

LABOR AND FRINGE BENEFITS The Fiscal Year 2021 labor and fringe benefit growth reflects pattern labor wage increases and benefit expenses as a result of negotiated labor agreements. The headcount increased by 167 positions for operator trainees and additional trainers in Surface, Subway- Elevated, and Regional Rail while providing for enhance safety in the track area. Positions were also added in Rail Vehicle Maintenance to support the M-4 vehicle bolster repair project, Regional Rail locomotives and revenue vehicles delivered in recent years.

SEPTA’s net labor cost includes a credit for labor expense from the operating to the capital budget for costs associated with capital projects.

MATERIAL AND SERVICES Material and Services includes replacement parts for fleet and infrastructure inventory as well as various services including utilities, contract repairs, snow removal, Amtrak trackage rights, and paratransit contract services.

The Fiscal Year 2021 budget assumes higher third party contract service and Amtrak trackage access costs.

SEPTA experienced an expense increase for Amtrak trackage access and costs with the implementation of PRIIA (Passenger Rail Investment and Improvement Act of 2008), effective October 2015. Through this Federal Act, Congress mandated that a standardized methodology be developed to allocate costs among Northeast Corridor (NEC) owners and operators that ensure each agency take full financial responsibility for its use of shared NEC infrastructure and related facilities.

INJURY AND DAMAGE CLAIMS Claims expense includes self-insured payouts, insurance premiums, and reserve adjustments. Fiscal year 2019 results included a favorable $6.1 million reserve adjustment. The Fiscal Year 2021 budget assumes an increase in insurance premiums along with a slight increase in the self-insured claims liability reserve.

PROPULSION POWER Revenue vehicle propulsion power expense is calculated based on estimated kilowatt-hour usage and rates. The Fiscal Year 2021 budget decreased from the Fiscal Year 2020 budget due to lower contracted electricity supplier rates.

FUEL Fuel expense is based on budgeted miles of revenue vehicle operation, miles per gallon fuel economy, and estimated fuel rates. The Fiscal Year 2021 budget reflects an assumed decrease in the cost of fuel as well as lower fuel consumption due to better fuel economy as additional hybrid buses are entered into service. 54 | SEPTA FY 2021 Operating Budget Proposal 10. Expense Assumptions By Category

RENTAL EXPENSE Rental expense covers all operating lease rentals for fixed facilities and short-term software, vehicle and equipment leases. The Fiscal Year 2021 budget is higher than the current year budget due to an increased need for leased non-revenue vehicles, equipment, and the lease of the new Customized Community Transportation customer communication software that is currently being implemented.

DEPRECIATION Depreciation expense is the amortization of the cost of the Authority's fixed assets over their estimated useful lives net of the amortization of contributed capital. The net increase in Fiscal Year 2021 includes depreciation on ESCO projects, tenant improvements and digital advertising displays which are being offset by increases in rental and advertising income and a reduction in utility costs.

55 | S E P T A FY 2021 Operating Budget Proposal 10. Ten Year Expense Trends

In developing the Operating Budget, the Authority considers issues that affect both the individual area of expense, as well as national, state, and local economic conditions. In addition, SEPTA focuses on historical trends in major expense categories, as illustrated in the following charts:

Amounts in Millions

Net Labor and Fringe Benefits

$1,400 $1,200 $1,000 $800 $600 $400 $200 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Proposal

Departmental Material and Services $180 $160 $140 $120 $100 $80 $60 $40 $20 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Proposal

Fuel $80 $70 $60 $45.4 $45.9 $43.8 $50 $42.0 $34.3 $40 $27.8 $30.0 $23.9 $24.4 $26.0 $30 $20 $10 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Proposal

Note: Decrease in FY 2015-2017 is due to lower fuel prices which began to increase in FY 2018-2019.

56 | S E P T A F Y 2021 Operating Budget Proposal 10. Ten Year Expense Trends

Amounts in Millions

Propulsion Power $60 $50 $40 $30 $20 $10 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Proposal

Injury and Damage Claims $70 $65 $60 $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Proposal

AMTRAK Trackage Access $60 $50 $40 $30 $20 $10 $- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Budget Proposal

Note: (1) Injury and Damage Claims decreased dramatically in FY 2013-2016 due to the installation of surveillance cameras on vehicles and select stations.

(2) AMTRAK expense increase due to implementation of Passenger Railroad Investment and Improvement Act (PRIIA), effective October 2015.

57 | S E P T A F Y 2021 Operating Budget Proposal 10. Summary of Operating Expenses

TOTAL OPERATING EXPENSES = $1,530,984 In Thousands

Labor and Fringe Benefits $1,088,773 71.1%

Material and Vehicle and Facility Services Rentals $331,432 $8,854 Fuel 21.6% 0.6% $26,026 Injury and Damage 1.7% Claims Propulsion Power $24,711 $27,313 Depreciation/ 1.6% 1.8% Contributed Capital $23,875 1.6%

58 | S E P T A F Y 2021 Operating Budget Proposal 10. FY 2021 Budget Proposal Detail of Expenses In 000’s

Material and Division/Departmental Expenses Labor and Fringe Services Total OPERATIONS Administration and Analysis $ 336 $ 271 $ 607 Control Center - Transit 5,070 175 5,245 Planning and Coordination 95 14 109 Customized Community Transportation 9,962 6,777 16,739 Assistant General Manager Staff 1,063 10 1,073 Rail Transportation-Subway-Elevated 56,116 1,211 57,327 Rail Transportation - Regional Rail 83,748 7,581 91,329 Surface Transportation 231,479 974 232,453 Total Operations $ 387,869 $ 17,013 $ 404,882

Vehicle Engineering and Maintenance $ 128,332 $ 52,591 $ 180,923 Engineering, Maintenance and Construction $ 84,459 $ 30,585 $ 115,044 Transit Police $ 21,760 $ 1,387 $ 23,147

STAFF DEPARTMENTS Audit and Investigative Services $ 1,999 $ 38 $ 2,037 Corporate Staff 3,335 195 3,530 Communications 1,332 757 2,089 Customer Experience and Advocacy 5,756 363 6,119 Deputy General Manager/Treasurer Administration 1,609 20 1,629 Employee Development and Relations 12,012 1,086 13,098 Finance 9,068 7,518 16,586 Planning and Strategic Initiatives 4,102 3,784 7,886 Human Resources 4,596 859 5,455 Information Technology 6,559 6,421 12,980 New Payment Technologies 126 12,848 12,974 Revenue Operations 14,168 18,859 33,027 Office of General Counsel 9,385 15,337 24,722 Procurement, Supply Chain and DBE 10,864 379 11,243 Public and Government Affairs 1,774 4,074 5,848 System Safety 2,035 986 3,021 Total Staff Departments $ 88,720 $ 73,524 $ 162,244 Capital Labor Allocation/Rental Reclassification (9,780) (8,854) (18,634) Total Departmental Expenses $ 701,360 $ 166,246 $ 867,606

NON-DEPARTMENTAL EXPENSES Fringe Benefits $ 387,413 $ - $ 387,413 Amtrak - 59,166 59,166 CCT - ADA Services - 34,300 34,300 CCT - Shared Ride Program - 24,200 24,200 Debt Service Interest and Fees - 16,456 16,456 Property Insurance/Other Claims Payouts, Net - 3,664 3,664 Services for Headquarters' Building - 5,384 5,384 Snow Removal and Other Weather Related Expenses - 5,650 5,650 Utilities - 18,824 18,824 Capitalized Costs and Other - (2,458) (2,458) Total Non-Departmental Expenses $ 387,413 $ 165,186 $ 552,599 OTHER OPERATING EXPENSES Injury and Damage Claims $ - $ 24,711 $ 24,711 Propulsion Power - 27,313 27,313 Fuel - 26,026 26,026 Vehicle and Facility Rentals - 8,854 8,854 Depreciation/Contributed Capital - 23,875 23,875 Total Other Expenses $ - $ 110,779 $ 110,779 TOTAL EXPENSES $ 1,088,773 $ 442,211 $ 1,530,984

59 | S E P T A F Y 2021 Operating Budget Proposal 10. FY 2021 Budget Proposal Allocation By Company In 000’s

Division/Departmental Expenses 1100 2100 2200 2300 3100 Total OPERATIONS Administration and Analysis $ 607 $ - $ - $ - $ - $ 607 Control Center - Transit 1,258 3,372 516 - 99 5,245 Planning and Coordination - 109 - - - 109 Customized Community Transportation 14,166 1,262 - 1,311 - 16,739 Assistant General Manager Staff 901 - - - 172 1,073 Rail Transportation-Subway-Elevated - 57,327 - - - 57,327 Rail Transportation - Regional Rail - 83 - - 91,246 91,329 Surface Transportation - 183,771 34,563 14,119 - 232,453 Total Operations $ 16,932 $ 245,924 $ 35,079 $ 15,430 $ 91,517 $ 404,882

Vehicle Engineering and Maintenance $ 872 $ 123,925 $ 11,886 $ 5,671 $ 38,569 $ 180,923 Engineering, Maintenance and Construction $ 4,834 $ 68,663 $ 6,669 $ 10 $ 34,868 $ 115,044 Transit Police $ 23,147 $ - $ - $ - $ - $ 23,147

STAFF DEPARTMENTS Audit and Investigative Services $ 2,037 $ - $ - $ - $ - $ 2,037 Corporate Staff 3,530 - - - - 3,530 Communications 2,089 - - - - 2,089 Customer Experience and Advocacy 6,119 - - - - 6,119 Deputy General Manager/Treasurer Administration 1,629 - - - - 1,629 Employee Development and Relations 5,845 3,968 454 145 2,686 13,098 Finance 16,586 - - - - 16,586 Planning and Strategic Initiatives 7,886 - - - - 7,886 Human Resources 5,455 - - - - 5,455 Information Technology 12,908 - - - 72 12,980 New Payment Technologies 12,974 - - - 12,974 Revenue Operations 14,487 305 - - 18,235 33,027 Office of General Counsel 14,975 6,278 306 186 2,977 24,722 Procurement, Supply Chain and DBE 9,691 369 - - 1,183 11,243 Public and Government Affairs 5,848 - - - - 5,848 System Safety 3,021 - - - - 3,021 Total Staff Departments $ 125,080 $ 10,920 $ 760 $ 331 $ 25,153 $ 162,244 Capital Labor Allocation/Rental Reclassification (12,737) (3,716) (49) (16) (2,116) (18,634) Headquarters Allocation (158,128) 115,605 10,942 3,447 28,134 - Total Departmental Expenses $ - $ 561,321 $ 65,287 $ 24,873 $ 216,125 $ 867,606

NON-DEPARTMENTAL EXPENSES Fringe Benefits $ 61,935 $ 226,369 $ 21,638 $ 7,918 $ 69,553 $ 387,413 Amtrak - - - - 59,166 59,166 CCT - ADA Services - 23,050 11,250 - - 34,300 CCT - Shared Ride Program - 24,200 - - - 24,200 Debt Service Interest and Fees 750 6,414 7 - 9,285 16,456 Property Insurance/Other Claims Payouts, Net 828 2,017 185 28 606 3,664 Services for Headquarters' Building 5,384 - - - - 5,384 Snow Removal and Other Weather Related Expenses - - - - 5,650 5,650 Utilities 5,991 7,826 663 130 4,214 18,824 Capitalized Costs and Other (2,725) 598 (32) (7) (292) (2,458) Headquarters Allocation (72,163) 52,758 4,994 1,573 12,838 - Total Non-Departmental Expenses $ - $ 343,232 $ 38,705 $ 9,642 $ 161,020 $ 552,599 OTHER OPERATING EXPENSES Injury and Damage Claims $ - $ 17,937 $ 1,094 $ 340 $ 5,340 $ 24,711 Propulsion Power - 10,394 1,233 - 15,686 27,313 Fuel - 19,980 3,311 2,189 546 26,026 Vehicle and Facility Rentals - 5,933 263 83 2,575 8,854 Depreciation/Contributed Capital - 17,454 313 72 6,036 23,875 Total Other Expenses $ - $ 71,698 $ 6,214 $ 2,684 $ 30,183 $ 110,779 TOTAL EXPENSES $ - $ 976,251 $ 110,206 $ 37,199 $ 407,328 $ 1,530,984

60 | S E P T A F Y 2021 Operating Budget Proposal 10. FY 2020 Budget Detail of Expenses In 000’s

Material and Division/Departmental Expenses Labor and Fringe Services Total OPERATIONS Administration and Analysis 322 271 593 Control Center - Transit $ 4,861 $ 275 5,136 Planning and Coordination 78 14 92 Customized Community Transportation 9,509 6,230 15,739 Assistant General Manager Staff 1,037 10 1,047 Rail Transportation-Subway-Elevated 55,017 1,211 56,228 Rail Transportation - Regional Rail 78,812 7,581 86,393 Surface Transportation 224,723 794 225,517 Total Operations $ 374,359 $ 16,386 $ 390,745

Vehicle Engineering and Maintenance $ 122,974 $ 55,091 $ 178,065 Engineering, Maintenance and Construction $ 81,661 $ 27,466 $ 109,127 Transit Police $ 21,361 $ 1,137 $ 22,498

STAFF DEPARTMENTS Audit and Investigative Services $ 1,656 $ 52 1,708 Corporate Staff 2,988 195 3,183 Communications 1,304 818 2,122 Customer Experience and Advocacy 5,628 358 5,986 Deputy General Manager/Treasurer Administration 1,705 20 1,725 Employee Development and Relations 11,383 1,016 12,399 Finance and Planning 12,101 6,612 18,713 Human Resources 4,206 808 5,014 Information Technology 6,222 6,406 12,628 New Payment Technologies 121 10,244 10,365 Revenue Operations 13,777 18,109 31,886 Office of Innovation 413 530 943 Office of General Counsel 8,979 15,337 24,316 Procurement, Supply Chain and DBE 10,579 339 10,918 Public and Government Affairs 1,752 3,868 5,620 System Safety 1,987 1,058 3,045 Total Staff Departments $ 84,801 $ 65,770 $ 150,571 Capital Labor Allocation/Rental Reclassification (9,779) (6,366) (16,145) Total Departmental Expenses $ 675,377 $ 159,484 $ 834,861

NON-DEPARTMENTAL EXPENSES Fringe Benefits $ 383,518 $ - 383,518 Amtrak - 52,045 52,045 CCT - ADA Services - 33,100 33,100 CCT - Shared Ride Program - 22,800 22,800 Debt Service Interest and Fees - 15,302 15,302 Property Insurance/Other Claims Payouts, Net - 3,396 3,396 Services for Headquarters' Building - 5,345 5,345 Snow Removal and Other Weather Related Expenses - 5,650 5,650 Utilities - 19,738 19,738 Capitalized Costs and Other - (2,457) (2,457) Total Non-Departmental Expenses $ 383,518 $ 154,919 $ 538,437 OTHER OPERATING EXPENSES Injury and Damage Claims $ - $ 23,720 23,720 Propulsion Power - 29,505 29,505 Fuel - 29,970 29,970 Vehicle and Facility Rentals - 6,366 6,366 Depreciation/Contributed Capital - 23,043 23,043 Total Other Expenses $ - $ 112,604 $ 112,604 TOTAL EXPENSES $ 1,058,895 $ 427,007 $ 1,485,902

61 | SEPTA FY 2021 Operating Budget Proposal 10. FY 2019 Detail of Actual Expenses In 000’s

Material and Division/Departmental Expenses Labor and Fringe Services Total OPERATIONS Administration and Analysis $ 333 $ 72 405 Planning and Coordination 113 113 Control Center - Transit 4,967 11 4,978 Customized Community Transportation 8,727 5,310 14,037 Assistant General Manager Staff 678 3 681 Rail Transportation-Subway-Elevated 51,349 907 52,256 Rail Transportation - Regional Rail 76,309 6,812 83,121 Surface Transportation 214,091 703 214,794 Total Operations $ 356,567 $ 13,818 $ 370,385

Vehicle Engineering and Maintenance $ 120,924 $ 48,940 $ 169,864 Engineering, Maintenance and Construction $ 77,321 $ 30,443 $ 107,764 Transit Police $ 20,224 $ 859 $ 21,083

STAFF DEPARTMENTS Audit and Investigative Services $ 1,506 $ 19 1,525 Corporate Staff 2,659 197 2,856 Communications 1,044 651 1,695 Customer Experience and Advocacy 5,125 377 5,502 Deputy General Manager/Treasurer Administration 1,667 6 1,673 Employee Development and Relations 10,358 1,022 11,380 Finance and Planning 10,890 5,484 16,374 Human Resources 4,066 709 4,775 Information Technology 5,718 4,761 10,479 New Payment Technologies 120 5,605 5,725 Revenue Operations 12,356 19,871 32,227 Office of Innovation 335 779 1,114 Office of General Counsel 8,383 18,139 26,522 Procurement, Supply Chain and DBE 8,997 340 9,337 Public and Government Affairs 1,481 5,252 6,733 System Safety 1,981 1,004 2,985 Total Staff Departments $ 76,686 $ 64,216 $ 140,902 Capital Labor Allocation/Rental Reclassification (7,497) (6,376) (13,873) Total Departmental Expenses $ 644,225 $ 151,900 $ 796,125

NON-DEPARTMENTAL EXPENSES Fringe Benefits $ 364,605 $ - 364,605 Amtrak - 49,608 49,608 CCT - ADA Services - 32,078 32,078 CCT - Shared Ride Program - 23,030 23,030 Debt Service Interest and Fees - 14,741 14,741 Property Insurance/Other Claims Payouts, Net - 7,464 7,464 Services for Headquarters' Building - 5,597 5,597 Snow Removal and Other Weather Related Expenses - 4,687 4,687 Utilities - 17,569 17,569 Capitalized Costs and Other - (4,754) (4,754) Total Non-Departmental Expenses $ 364,605 $ 150,020 $ 514,625 OTHER OPERATING EXPENSES Injury and Damage Claims $ - $ 16,490 16,490 Propulsion Power - 29,807 29,807 Fuel - 27,816 27,816 Vehicle and Facility Rentals - 6,376 6,376 Depreciation/Contributed Capital - 20,127 20,127 Total Other Expenses $ - $ 100,616 $ 100,616 TOTAL EXPENSES $ 1,008,830 $ 402,536 $ 1,411,366

62 | SEPTA FY 2021 Operating Budget Proposal 11. Fiscal Year 2021 Headcount Authorizations

HEADCOUNT DESIGNATIONS

Organization Overview

The organization, staffing, and expenses are shown for each division in the Departmental Summaries Section, including subtotals by department. Total headcount is further segregated by Operating versus Capital. The following definitions shall apply throughout this section:

Mgmt.………………..………….. Supervisory, administrative, and management employees.

Clerical.……………..………….. Unionized clerical, storeroom and customer service agent employees.

Maintenance...………………… Unionized maintenance and transportation Transportation, or Cashiers employees, cashiers, and police officers.

Capital………………………….. Positions supported by federal, state, or local capital funding initiatives.

The Fiscal Year 2021 authorized headcount is at 9,894 employees and reflects an increase of 167 positions for operator trainees and additional trainers in Surface, Subway-Elevated, and Regional Rail while providing for enhanced safety in the track area. Positions were also added in Rail Vehicle Maintenance to support the M-4 vehicle bolster repair project, Regional Rail locomotives and revenue vehicles delivered in recent years.

Fiscal Year 2021 also incorporates a new division, Planning and Strategic Initiatives, formed during Fiscal Year 2020. This new division includes the Service Planning and Strategic Planning and Analysis departments that were previously a part of the Finance Division and the Office of Innovation department.

63 | SEPTA FY 2021 Operating Budget Proposal 11. Fiscal Year 2021 Headcount Authorizations

OPERATING HEADCOUNT Mgmt. Clerical Maint. Transp. Cashier Total Audit and Investigative Services 19 - 4 - - 23 Corporate Staff 18 - - - - 18 Communications 10 5 3 - - 18 Customer Experience and Advocacy 24 60 - - - 84 Deputy General Manager/Treasurer Admin. 9 - - - - 9 Employee Development/Relations 128 - 5 - - 133 Finance 84 38 - - - 122 Human Resources 37 17 - - - 54 Information Technology 67 5 - - - 72 New Payment Technologies 1 - - - - 1 Revenue Operations 109 44 48 - - 201 Planning and Strategic Initiatives 43 15 - - - 58 Office of General Counsel 95 23 - - - 118 Operations 552 81 187 3,702 320 4,842 Engineering, Maintenance and Construction 197 69 823 - - 1,089 Transit Police 63 - 210 - - 273 Procurement, Supply Chain and DBE 91 63 1 - - 155 Public and Government Affairs 21 - - - - 21 System Safety 24 - - - - 24 Vehicle Engineering and Maintenance 205 35 1,539 - - 1,779 Total Operating Headcount 1,797 455 2,820 3,702 320 9,094

CAPITAL HEADCOUNT Mgmt. Clerical Maint. Transp. Cashier Total Audit and Investigative Services ------Corporate Staff ------Communications ------Customer Experience and Advocacy ------Deputy General Manager/Treasurer Admin. 1 - - - - 1 Employee Development/Relations ------Finance 3 - - - - 3 Human Resources ------Information Technology ------New Payment Technologies 6 - - - - 6 Revenue Operations ------Planning and Strategic Initiatives 1 - - - - 1 Office of General Counsel ------Operations 6 - - 15 - 21 Engineering, Maintenance and Construction 153 7 306 - - 466 Transit Police ------Procurement, Supply Chain and DBE 12 - - - - 12 Public & Government Affairs ------System Safety 3 - - - - 3 Vehicle Engineering and Maintenance 63 3 221 - - 287 Total Capital Headcount 248 10 527 15 - 800

64 | SEPTA FY 2021 Operating Budget P r o p o s a l 11. Fiscal Year 2021 Headcount Authorizations

TOTAL HEADCOUNT Mgmt. Clerical Maint. Transp. Cashier Total Audit & Investigative Services 19 - 4 - - 23

Corporate Staff 18 - - - - 18

Communications 10 5 3 - - 18

Customer Experience and Advocacy 24 60 - - - 84

Deputy General Manager/Treasurer Admin. 10 - - - - 10

Employee Development and Relations 128 - 5 - - 133

Finance 87 38 - - - 125

Human Resources 37 17 - - - 54

Information Technology 67 5 - - - 72

New Payment Technologies 7 - - - - 7

Revenue Operations 109 44 48 - - 201

Planning and Strategic Initiatives 44 15 - - - 59

Office of General Counsel 95 23 - - - 118

Operations 558 81 187 3,717 320 4,863

Engineering, Maintenance and Construction 350 76 1,129 - - 1,555

Transit Police 63 - 210 - - 273

Procurement, Supply Chain and DBE 103 63 1 - - 167

Public and Government Affairs 21 - - - - 21

System Safety 27 - - - - 27

Vehicle Engineering and Maintenance 268 38 1,760 - - 2,066

Total Headcount 2,045 465 3,347 3,717 320 9,894

65 | SEPTA FY 2021 Operating Budget P r o p o s a l

11. Fiscal Years 2017 – 2021 Headcount Authorization

OPERATING HEADCOUNT BY FISCAL YEAR 2017 2018 2019 2020 2021 Audit and Investigative Services 20 20 20 20 23 Corporate Staff 14 18 17 17 18 Communications 19 18 18 18 18 Customer Experience and Advocacy 84 84 84 84 84 Deputy General Manager/Treasurer Admin. 9 9 9 10 9 Employee Development and Relations 122 129 129 133 Finance 170 170 171 171 122 Human Resources 160 53 53 53 54 Information Technology 71 71 71 71 72 Labor Relations 14 New Payment Technologies - 1 1 1 Revenue Operations 188 208 201 201 Office of Innovation 5 5 5 6 Planning and Strategic Initiatives 58 Office of General Counsel 118 117 117 117 118 Operations 5,129 4,684 4,646 4,718 4,842 Engineering, Maintenance and Construction 1,068 1,065 1,073 1,081 1,089 Planning, Project Coordination and Safety 1 Procurement, Supply Chain and DBE 149 147 147 149 155 Public and Government Affairs 20 21 21 21 21 System Safety 24 24 24 24 24 Transit Police 273 273 273 273 Vehicle Engineering and Maintenance 1,771 1,758 1,760 1,764 1,779 Total Operating Headcount 8,846 8,847 8,847 8,928 9,094

CAPITAL HEADCOUNT BY FISCAL YEAR 2017 2018 2019 2020 2021 Audit and Investigative Services - - - - - Corporate Staff 1 2 - - - Communications - - - - Customer Experience and Advocacy - - - - - Deputy General Manager/Treasurer Admin. 1 1 1 1 Employee Development and Relations - - - Finance 6 6 5 4 3 Human Resources - - - - - Information Technology - - - - - Labor Relations New Payment Technologies 11 9 7 6 Revenue Operations - - - Office of Innovation - - - Planning and Strategic Initiatives - - - 1 Office of General Counsel - - - - - Operations 36 20 21 21 21 Engineering, Maintenance and Construction 459 461 465 465 466 Planning, Project Coordination and Safety 3 Procurement, Supply Chain and DBE 13 15 15 15 12 Public and Government Affairs - - - - - System Safety 3 3 3 3 3 Transit Police - - - Vehicle Engineering and Maintenance 286 287 287 283 287 Total Capital Headcount 807 806 806 799 800

66 | SEPTA FY 2021 Operating Budget P r o p o s a l

11. Fiscal Years 2017 – 2021 Headcount Authorization

TOTAL HEADCOUNT BY FISCAL YEAR 2017 2018 2019 2020 2021

Audit and Investigative Services 20 20 20 20 23

Corporate Staff 15 20 17 17 18

Communications 19 18 18 18 18

Customer Experience and Advocacy 84 84 84 84 84

Deputy General Manager/Treasurer Admin. 9 10 10 11 10

Employee Development and Relations 122 129 129 133

Finance 176 176 176 175 125

Human Resources 160 53 53 53 54

Information Technology 71 71 71 71 72

Labor Relations 14

New Payment Technologies 11 10 8 7

Revenue Operations 188 208 201 201

Office of Innovation 5 5 5 6

Planning and Strategic Initiatives 59

Office of General Counsel 118 117 117 117 118

Operations 5,165 4,704 4,667 4,739 4,863

Engineering, Maintenance and Construction 1,527 1,526 1,538 1,546 1,555

Planning, Project Coordination and Safety 4

Procurement, Supply Chain and DBE 162 162 162 164 167

Public and Government Affairs 20 21 21 21 21

System Safety 27 27 27 27 27

Transit Police 273 273 273 273

Vehicle Engineering and Maintenance 2,057 2,045 2,047 2,047 2,066

Total Headcount 9,653 9,653 9,653 9,727 9,894

67 | SEPTA FY 2021 Operating Budget P r o p o s a l

11. Headcount Authorization Cause of Change Fiscal Year 2020 to Fiscal Year 2021

Fiscal Year 2020 Authorized Headcount 9,727

Division / Department Cause of Change

Audit and Investigative  Three management position s added +3 Services

Corporate Staff  One management position added +1

Deputy General  One management position transferred to Planning & -1 Manager/Treasurer Admin. Strategic Initiatives

Employee Development and  Four management positions added +4 Relations

 34 management positions transferred to Planning and -50 Finance Strategic Initiatives

 16 clerical positions transferred to Planning and Strategic Initiatives

 One management position added +1 Human Resources

+1 Information Technology  One management position transferred from New Payment Technologies

New Payment Technologies  One management position transferred to Information -1 Technology

Planning and Strategic  Two management positions added +59 Initiatives  One management position transferred from Deputy General Manager/Treasurer Admin.  50 management positions transferred from Finance  Six management positions transferred from Office of Innovation Office of General Counsel  One management position added +1

Engineering, Maintenance  One management position added +9 and Construction  Eight maintenance positions added

Procurement, Supply Chain  Three management positions added +3 and DBE

68 | SEPTA FY 2021 Operating Budget P r o p o s a l

11. Headcount Authorization Cause of Change Fiscal Year 2020 to Fiscal Year 2021

Division / Department Cause of Change

 Six management positions transferred to Planning -6 Office of Innovation and Strategic Initiatives

+2 Operations/Customized  Two management positions added Community Transportation

Operations/Control Center -  One management position added +1 Transit

Operations/Rail  One management position added +17 Transportation-Subway-  17 Transportation positions added Elevated

Operations/Rail  80 Transportation positions added +80 Transportation-Regional Rail

Operations/Surface  One management position added +24 Transportation  23 Transportation positions added

Vehicle Engineering and  Five management positions added +19 Maintenance  14 maintenance positions added

Total Increase/Decrease +167

Fiscal Year 2021 Authorized Headcount 9,894

69 | SEPTA FY 2021 Operating Budget P r o p o s a l

12. Departmental Summaries for Fiscal Year 2021

70 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Corporate Staff

71 | SEPTA FY 2021 Operating Budget Proposal Corporate Staff

Overview

SEPTA’s Corporate Staff consists of a team of experienced transit professionals who are dedicated to providing vision and guidance to the Authority, while optimizing the best use of limited resources. The Corporate Staff strives to partner with stakeholders to promote public transit service as a cost-effective, viable travel option for access to work, school, medical service, shopping, leisure activities and tourism. The Corporate Staff is also committed to operating and managing a system which meets the highest standards for customer and employee safety while providing quality services.

Office of the General Manager

General Manager

Board Chairman Executive Staff

Board Staff

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Board Staff 4 - 4

Executive Staff 9 - 9

Office of the General Manager 5 - 5

Total Headcount 18 - 18

72 | SEPTA FY 2021 Operating Budget P r o p o s a l Corporate Staff

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Board Staff $ 544 $ 66 $ 610

Executive Staff 1,964 17 1,981

Office of the General Manager 827 112 939

Total $ 3,335 $ 195 $ 3,530

Principal Responsibilities

Board Staff Prepares and attests to all Board documentation generated from committee and Board meetings as well as advising and consulting with the Board on all Board-related matters. The Board staff includes a Secretary to the Board, an Assistant Secretary to the Board, a Controller to the Board, and a Board and Government Liaison.

Executive Staff Manages and directs the daily functions of the Authority. Executive Staff includes the division leaders reporting directly to the General Manager. Collectively, they are responsible for the operation, administration, and financial management of the Authority.

Office of the General Manager Oversees all SEPTA services and operations. Along with the SEPTA Board, provides leadership and direction for the Authority.

Fiscal Year 2021 Goals and Business Initiatives

SEPTA’s former Strategic Business Plan for Fiscal Years 2015 through 2019 established the framework for corporate goal-setting. SEPTA is currently developing an update to the plan. The former strategic plan is available at www.septa.org/strategic-plan. SEPTA’s “Building the Future” program features a series of initiatives directed towards these corporate goals, grouped into the following five focus areas:

GOAL OVERVIEW The Customer Experience Meeting or exceeding rising customer expectations

Workforce Development and Attracting and retaining a diverse, highly-skilled, and Support versatile workforce

Rebuilding the System Reducing the backlog of capital repair needs

SEPTA is a Business Responsibly managing resources to grow the system

Safety and Security as the A safety-first corporate culture Foundation

73| SEPTA FY 2021 Operating Budget P r o p o s a l Corporate Staff

CORPORATE BUSINESS INITIATIVES

Customer Experience Initiatives:  Complete new Customer Satisfaction Survey and implement action plans  Advance SEPTA Key deployment, finishing roll out on Regional Rail, initiating CCT, and convene a task force to plan “Key 2.0”  In stations: Progress countdown clocks on Broad Street and Market-Frankford Lines, Intensify cleaning effort across the system  Continue partnerships to provide resources to the homeless population in Center City  Prepare facilities and provide Ambassador support for major events, including Flower Show, Broad Street Run, and Welcome America  Minimize customer disruption on major construction projects, including Southwest Connection, Trolley Blitz, 30th Street Station and 5th Street Station  Revamp public website, www.septa.org

Internal Initiatives:  Advance implementation of new Human Resources Information Systems suite and the replacement of other key Finance modules  Implement Diversity and Inclusion Program  Continue to implement employee facility improvement projects

Regional Rail Network Initiatives:  Infrastructure: Continue to advance construction of Elwyn to Wawa Restoration to a new station at Route 1/Middletown; continue next phase of Regional Rail Stone Arch Bridge rehabilitation program, advance design and construction for 30th Street West Catenary replacement, complete phase 3 of the Southwest Connection Improvement Program  Vehicles: Progress delivery of Multi-Level rail cars and continue to upgrade Frazer Yard to accommodate these vehicles  Power: Advance overhaul of Lansdale, Hatboro, and 12th Street and Portal, Neshaminy, Bethayres and Yardley railroad substations  Stations: Advance construction at Ardmore Transportation Center, and Conshohocken station

Rail Transit Network Initiatives:  Trolleys: Advance conceptual design efforts including Pole-to-Pan Conversion, Station Accessibility and Power Distribution Studies; Track and Clearance Study; Station Evaluation; Vehicle Specification Development; Conduct Tunnel Maintenance Blitz  Stations (CTD): Advance design of Tasker-Morris (BSL) and 11th Street; Advance construction at Susquehanna-Dauphin (BSL) and continue construction at 5th Street and 30th Street (MFL) Phase A and B; City Hall Station inter-station connections and structural work  MFL: Advance capacity expansion projects, including interior seating reconfiguration  NHSL King of Prussia Rail: Continue evaluating funding strategies to advance 30% Design

Bus Network Initiatives  Vehicles: Complete delivery of 525 Hybrid-Electric Bus order; Initiate procurement of 10 Battery-Electric Buses  Progress bus network redesign

74| SEPTA FY 2021 Operating Budget Proposal

Corporate Staff

CORPORATE BUSINESS INITIATIVES

Planning and Technology Initiatives:  Continue to partner with the City of Philadelphia on the implementation of its “Connect” transportation plan  Continue to implement Energy Action Plan  Advance Ridership Growth Innovation Team initiatives  Develop master plans for 69th Street Complex that address customer experience and capacity issues  Continue to implement recommendations from the inventory management review  Complete full deployment of Trapeze Ops software for Transportation Management  Continue to implement PennDOT performance review action items and report on progress  Continue to communicate the value of SEPTA to the city, region and state through economic impact analyses

Safety Initiatives:  Conduct “Make the Safe Choice” and “Never Too Busy For Safety” safety culture campaigns  Continue to implement operator refresher safety training program  Advance Communications-Based Train Control (CBTC) installation on Media- Sharon Hill Line  Intensify focused campaign on track area falls  Continue to advance track bumper replacement program  Complete 3rd party vehicle inspections  Implement recommendations from 3rd party review of roadway worker protection program  Continue efforts to reduce signal violations on rail modes  Continue installation of Bus Operator Shields, advance installation of Trolley Operator shields; advance implementation of Automatic Passenger Counters on Buses, Trolleys and Norristown High Speed Line rail cars  Advance construction of ventilation system improvements at Jefferson and Suburban Stations  Advance Safety and Security improvements at Fern Rock Complex

75 | SEPTA FY 2021 Operating Budget Proposal

SEPTA

Transit Police

76 | SEPTA FY 2021 Operating Budget P r o p o s a l Transit Police

Overview

SEPTA’s Transit Police are tasked with preventing and investigating crime; establishing an atmosphere of safety and security throughout each of our transit modes; and serving as public safety ambassadors for the transit system.

Patrol Bureau

Administration

Office of Professional Chief of Police Responsibility

Special Operations Bureau

Headcount

OPERATING HEADCOUNT Mgmt. Police Total Administration 10 9 19

Patrol Bureau 22 127 149

Office of Professional 9 28 37 Responsibility Special Operations Bureau 22 46 68

Total Headcount 63 210 273

77 | SEPTA FY 2021 Operating Budget P r o p o s a l Transit Police

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 1,629 $ - $ 1,629

Patrol Bureau 11,565 1,387 12,952

Office of Professional 3,055 - 3,055 Responsibility Special Operations Bureau 5,511 - 5,511

Total $ 21,760 $ 1,387 $ 23,147

Transit Police Labor Expense & Headcount Trend $ In Thousands $25,000 285 280 $20,000 275 270 $15,000 265 260 255 $10,000 250 245 $5,000 240 235 $0 230 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $19,934 $19,779 $19,926 $20,224 $21,361 $21,760 Headcount 273 273 273 273 273 273

Transit Police Material & Services Trend $ In Thousands $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 FY 21 FY 16 FY 17 FY 18 FY 19 FY 20 Budget Proposal M&S $901 $755 $891 $859 $1,137 $1,387

78 | SEPTA FY 2021 Operating Budget P r o p o s a l Transit Police

Principal Responsibilities

Patrol Bureau Ensure a safe work and travel environment and enhance the quality of life through law enforcement and protection against crime. Manage the three Transit Police Districts and overnight shifts responsible for patrol (primarily in uniform) of the Broad Street Subway Line, Market-Frankford Line, trolley lines, Regional Rail, and all SEPTA stations and properties.

Office of Professional Responsibility Ensure the delivery of professional police services, quality control and the continuing education of the department's members. Responsible for the investigation of Transit Police misconduct; management of the body camera program; training of members; recruitment and background investigations.

Special Operations Bureau Responsible for counterterrorism prevention, specialized emergency response/rescue, criminal investigations, radio communications and records management. Manages SORT, VIPR, K9 operations, and respond to incidents requiring special weapons or equipment. Manages criminal investigation section, undercover operations, communications and records management.

79 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

System Safety

80 | SEPTA FY 2021 Operating Budget P r o p o s a l System Safety

Overview SEPTA’s System Safety Division consists of a team of experienced safety professionals who are dedicated to ensuring and enhancing the safety of SEPTA’s employees and customers. This Division serves as the corporate safety consultants for all employees to ensure regulatory compliance with a variety of safety and environmental regulations.

Assistant General Manager System Safety

System Safety Construction Safety

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total System Safety 24 - 24

Construction Safety - - -

Total Operating Headcount 24 - 24

CAPITAL HEADCOUNT Mgmt. Clerical Total System Safety - - -

Construction Safety 3 - 3

Total Capital Headcount 3 - 3

TOTAL HEADCOUNT Mgmt. Clerical Total System Safety 24 - 24

Construction Safety 3 - 3

Total Headcount 27 - 27

81 | SEPTA FY 2021 Operating Budget Proposal System Safety

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

System Safety $ 2,035 $ 986 $ 3,021

Total $ 2,035 $ 986 $ 3,021

System Safety Labor Expense & Headcount Trend $ In Thousands $2,500 40 35 $2,000 30 $1,500 25 20 $1,000 15 10 $500 5 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $1,615 $1,728 $1,708 $1,981 $1,987 $2,035 Headcount 25 27 27 27 27 27

System Safety Material & Services Trend $ In Thousands $2,000

$1,500

$1,000

$500

$0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $501 $737 $1,187 $1,004 $1,058 $986

Note: The increase in FY 17 and FY 18 M&S Expenditures reflects third party services for safety training, testing, and consulting.

82 | SEPTA FY 2021 Operating Budget Proposal System Safety

Principal Responsibilities

SYSTEM SAFETY System Safety performs a wide range of tasks that are designed to ensure and enhance the safety of our employees, customers, and the community. These tasks include the following:

 Develop, implement, and maintain a Safety Management System as detailed in the Authority’s Safety Plans.

 Coordinate all functions related to safety throughout the Authority, including the potential for environmental and workplace health exposures.

 Routinely perform an enhanced level of safety inspections and audits. In addition to major accident investigations, also conduct occupational injury investigations and safety/risk management assessments.

 Conduct fire drills and evacuation exercises at all Authority locations.

 Direct the activities of the Joint Health and Safety Committee (JHSC) and oversee the Location Safety Committee (LSC) process.

 Assist in the coordination of multi-departmental initiatives to promote and internalize safety as the Authority’s top priority.

 Provide consultation and support in the areas of environmental compliance and management of SEPTA’s environmental activities.

 Oversee Environmental Site Characterization Assessments, Phase I and II Property Acquisition Assessments, and Remediation Projects.

 Oversee the Authority’s ISO 14001 Environmental and Sustainability Management System (ESMS).

 Manage the Property Conservation Program and the risk treatment process. Work to reduce risk exposure and implement effective risk control techniques at all Authority locations.

 Coordinate the collection and reporting of all safety statistics throughout the Authority and administer the reporting of those statistics to regulatory agencies.

 Conduct safety design reviews of SEPTA’s capital construction projects.

 Conduct Safety Inspections and Audits of major Construction projects performed by both 3rd party contractors and SEPTA in-house forces.

 Serves as the Authority’s Safety Liaison to various regulatory agencies; NTSB, FRA, FTA, EPA, PaDEP and PennDOT.

83 | SEPTA FY 2021 Operating Budget P r o p o s a l System Safety

Fiscal Year 2021 Goals and Business Initiatives

GOALS BUSINESS INITIATIVES

I. Improve Employee Safety a) Continue to lead employee-focused safety initiatives and Promote a Safe Work and safety awareness campaigns. Environment b) Implement FRA-compliant System Safety Plan. c) Implement FTA-compliant Authority Safety Plan. d) Reduce employee Injuries by 5%. e) Reduce vehicle crashes by 10%. f) Reduce signal violations on rail modes by 10%.

II. Increase Customer Safety a) Continue to lead customer-focused safety campaigns Awareness (“Make the Safe Choice”, “Watch Their Step”, “Respect the Train”). b) Explore technology based solutions to reduce vehicle accidents. c) Reduce customer related incidents (e.g. falls into the tracks, fatalities, knockdowns, grade crossing incidents. d) Roll out New Customer Safety Awareness Campaigns.

III. Ensure Responsible a) Maintain ISO 14001 certification at Berridge Shop. Environmental b) Maintain ISO 14001 certification at Wayne Junction Management Through the Shop. Authority’s Environmental c) Reduce vehicle engine idling at shops, facilities, and Sustainability loops, and terminals. Management System d) Reduce oil, fuel and coolant spills from vehicles. Program e) Reduce SEPTA’s carbon emission foot print. f) Increase use of renewable energy sources.

IV. Develop a Safety-First a) Continue the transition to Safety Management System Culture (SMS)-compliant safety programs as required by FTA. b) Utilize a data-driven approach to safety decision making. c) Continue to develop innovative ways to enhance the Authority’s overall safety culture. d) Continue to enhance the number of Safety Training courses available to SEPTA employees. e) Continue to promote a grass roots approach to hazard identification and mitigation through Safety Committees, Training, and Supervisor involvement.

84 | SEPTA FY 2021 Operating Budget P r o p o s a l System Safety

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Improve Employee  Implemented 55 different Safety Training Courses to assist Safety and Promote a over 8,000 employees in safety development. Safe Work Environment  Reduced workplace loss time injuries to a 10 year low.  Reduced falls from platforms by 7%.  Reduced bus knockdowns by 26%.  Reduced fatalities on the tracks by 5%.  Reduced grade crossing collisions by 46%. II. Increase Customer  Customer Safety Day campaign held in FY 2020. Safety Awareness  Safe Turn Alert system now installed in over 1,000 of SEPTA’s bus fleet.  Partnered with Philadelphia’s Vision Zero Campaign.  Conducted 11 Station Safety blitzes that reached over 39,000 customers.  Conducted 40 Operation Lifesaver presentations that reached over 5,700 customers.  SEPTA’s Safety Bus was at 10 separate public events reaching over 3,200 customers. III. Ensure Responsible  Berridge Shop ISO 14001 certification sustained and corrective Environmental action items being addressed. Management Through  Wayne Shop ISO 14001 certification sustained and corrective a Comprehensive action items being addressed. ESMS Program  Safety Data Sheet (SDS) Electronic Tracking system (3E) is being utilized Authority wide.  Fume leak incidents inside revenue buses reduced by 27% from the previous year.  Anti-Idling Campaign for vehicle engines showing favorable reduction in fuel consumption and costs. IV. Develop a Safety First  SEPTA’s new Authority Safety Plan for Rail Transit, Bus and Culture CCT being developed. Plans should be complete with General Manager and Board Concurrence by FTA deadline of July 2020.  Data analysis has been enhanced with regular meetings with General Manager/Deputy General Manager as well as Monthly Management Reports generated. This process will fulfill the data acquisition component of FTA’s future SMS regulation under 49 CFR 673/674.  Held two annual employee safety days. Educated employees on how to report hazards and discussed the successes of the location safety committees.  Held over 20 town hall meetings with all maintenance-of-way employees to discuss roadway worker safety practices and discussed any safety concerns that may exist.

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SEPTA

Operations

86 | SEPTA FY 2021 Operating Budget P r o p o s a l Operations

Overview The Operations Division includes the following departments: Planning and Coordination, Control Center – Transit, Customized Community Transportation (CCT), Operations Staff, Rail Transportation, Surface Transportation, and Administration and Finance. The Division provides long term goals related to these areas of responsibility.

The Operations Division provided 292.9 million annual passenger trips in Fiscal Year 2019, while operating 101.4 million vehicle miles. Total passenger miles exceeded 1.3 billion. The Division operates 2,884 revenue vehicles on 152 fixed routes, which have approximately 1,570 route miles and over 600 miles of track. The Operations Division also operates and provides service to 279 stations.

Planning and Coordination

Customized Community Transportation

Rail Transportation - Subway - Elevated Assistant General Manager/ Administration Chief Operations and Finance Officer Rail Transportation - Regional Rail

Surface Transportation

Control Center - Transit

87 | SEPTA FY 2021 Operating Budget Proposal

Operations

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Maint. Transp. Cashier Total Administration and Analysis 4 - - - - 4 Planning and Coordination 1 - - - - 1 Control Center - Transit 50 - - 4 - 54 Customized Community Transportation 92 - - 24 - 116 Assistant General Manager Staff 7 - - - - 7 Rail Transportation – Subway-Elevated 97 3 182 175 320 777 Rail Transportation – Regional Rail 110 54 5 705 - 874 Surface Transportation 191 24 - 2,794 - 3,009 Total Operating Headcount 552 81 187 3,702 320 4,842

CAPITAL HEADCOUNT Mgmt. Clerical Maint. Transp. Cashier Total Administration and Analysis ------Planning and Coordination 2 - - - - 2 Control Center - Transit 1 - - - - 1 Customized Community Transportation ------Assistant General Manager Staff 1 - - - - 1 Rail Transportation – Subway-Elevated 1 - - - - 1 Rail Transportation – Regional Rail 1 - - - - 1 Surface Transportation - - - 15 - 15 Total Capital Headcount 6 - - 15 - 21

TOTAL HEADCOUNT Mgmt. Clerical Maint. Transp. Cashier Total Administration and Analysis 4 - - - - 4 Planning and Coordination 3 - - - - 3 Control Center - Transit 51 - - 4 - 55 Customized Community Transportation 92 - - 24 - 116 Assistant General Manager Staff 8 - - - - 8 Rail Transportation – Subway-Elevated 98 3 182 175 320 778 Rail Transportation – Regional Rail 111 54 5 705 - 875 Surface Transportation 191 24 - 2,809 - 3,024 Total Headcount 558 81 187 3,717 320 4,863

88 | SEPTA FY 2021 Operating Budget Proposal

Operations

Budget Amounts in Thousands (‘000) Net Material Labor & Services Total Administration and Analysis $ 336 $ 271 $ 607 Planning and Coordination 95 14 109 Control Center - Transit 5,070 175 5,245 Customized Community Transportation 9,962 6,777 16,739 Assistant General Manager Staff 1,063 10 1,073 Rail Transportation – Subway-Elevated 56,116 1,211 57,327 Rail Transportation – Regional Rail 83,748 7,581 91,329 Surface Transportation 231,479 974 232,453 Total $ 387,869 $ 17,013 $ 404,882

Customized Community Transportation Labor Expense & Headcount Trend $ In Thousands $12,000 140 $10,000 120 $8,000 100 $6,000 80 $4,000 60 $2,000 40 $0 20 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $7,598 $7,794 $7,842 $8,727 $9,509 $9,962 Headcount 114 114 114 114 114 116

Note: FY 2020 and FY 2021 includes additional labor to support ADA/senior citizen eligibility screening utilizing part-time employees.

89 | SEPTA FY 2021 Operating Budget Proposal0

Operations

Customized Community Transportation Material & Services Trend $ In Thousands Includes Contract Services $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $50,806 $57,106 $53,387 $60,418 $62,130 $65,277

Note: Customized Community Transportation proposal includes $58.5 million in ADA and Shared Ride contract services.

Rail Transportation Labor Expense & Headcount Trend $ In Thousands $160,000 1,800 $140,000 1,600 $120,000 1,400 $100,000 1,200 1,000 $80,000 800 $60,000 600 $40,000 400 $20,000 200 $0 - FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $125,269 $119,645 $125,196 $127,658 $133,829 $139,864 Headcount 1,654 1,667 1,494 1,497 1,556 1,653

Note: New Payment Technology Integration was transferred from Rail

Transportation in FY 2018 to Revenue Operations under the Deputy General Manager. Rail Transportation Material & Services Trend $ In Thousands $25,000

$20,000

$15,000

$10,000

$5,000

$0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $19,174 $21,947 $6,949 $7,719 $8,792 $8,792

Note: Decrease in FY 2018 reflects New Payment Technologies transfer from Rail Transportation to the Deputy General Manager. FY 2020 increase rd reflects higher 3 party contract maintenance service costs.

90 | SEPTA FY 2021 Operating Budget Proposal

Operations

Surface Transportation Labor Expense & Headcount Trend $ In Thousands $250,000 3,200 3,000 $200,000 2,800 $150,000 2,600 2,400 $100,000 2,200 $50,000 2,000 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $203,716 $204,023 $213,280 $214,091 $224,723 $231,479 Headcount 2,967 2,977 2,977 3,026 3,000 3,024

Note: Increase in FY 2019 headcount reflects Project and Control Center Coordination transfer of positions to Surface Transportation. FY 2020 headcount decrease reflects transfers to new Control Center – Transit Department partially offset by added bus operators to support the new Route 49 service. FY 2021 includes the addition of bus operator trainees.

Surface Transportation Material & Services Trend $ In Thousands $1,200 $1,000 $800 $600 $400 $200 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $416 $486 $491 $703 $794 $974

Principal Responsibilities

ADMINISTRATION AND FINANCE Coordinate and manage the administrative and financial activities for the Operations Division.

Cost Control Coordinate the development, submission, and monitoring of Operating and Capital Budgets for the Operations Division.

Performance Statistics Control Develop and monitor performance statistic goals for the Operations Division, which support SEPTA’s mission and strategic goals.

Human Resource Administration Manage the process of hiring personnel for the Operations Division in accordance with service requirements. Ensure compliance with SEPTA’s Human Resources policies.

91 | SEPTA FY 2021 Operating Budget Proposal

Operations

Customer Service Process and expedite all customer correspondence routed through the Operations Division.

Record Retention Coordinate compliance with record retention policies.

Special Projects Coordinate all logistics and activities related to service interruptions, major sporting events and various other annual events, including the Philadelphia Flower Show and Philly Spring Clean-Up.

CUSTOMIZED COMMUNITY TRANSPORTATION (CCT) Customized Community Transportation (CCT) is responsible for the operation of SEPTA’s two demand response services, ADA Paratransit and Shared Ride Program transportation. This full service operation, from advance reservations and customer service to shared trip completion, operates under the name “CCT Connect”. It coordinates development of Requests for Proposals to contract for private operation of new services and provides for the efficient administration of existing contract carrier operations.

CCT coordinates SEPTA’s compliance with the Americans with Disabilities Act (ADA) as it pertains to service, equipment and facilities, advising other operating departments on implementing accessible fixed-route service and facility improvements. CCT also serves as liaison between SEPTA Divisions and the SEPTA Advisory Committee for Accessible Transportation (SAC).

CCT also administers eligibility screening for the following programs: PA Disability Transit ID, Senior Citizen Transit ID and Personal Care Attendants on Transit ID. In addition, CCT provides travel training by certified professionals to instruct people how to travel independently on public transportation. This service is offered one-to-one or as part of designed instruction for a group in partnership with several local universities and Philadelphia high schools. CCT oversees the Authority’s customized small bus operations and public-private partnerships via its Contract Operations Department.

CCT CONNECT

ADA Services Provide advance-reservation, ride-sharing paratransit service for eligible disabled riders in Bucks, Chester, Delaware, Montgomery, and Philadelphia counties.

Shared Ride Program (SRP) Provide advance-reservation, ride-sharing transportation for Philadelphia County riders age 65 and older, regardless of income or disability status.

CONTRACT OPERATIONS

Breeze Operates SEPTA's small bus service known as the Horsham "Breeze". This service provides transportation designed to meet the needs of employers in the Willow Grove and Horsham business centers. The Breeze operates weekday and Saturday service. 92 | SEPTA FY 2021 Operating Budget Proposal

Operations

LUCY Operates a fixed route bus loop in the University City area of West Philadelphia. The service is funded by subsidies from the University City District and operates weekday service only.

Cornwells Heights Shuttle Operates a small bus shuttle within the 1,600-space park-and-ride lot at Cornwells Heights train station. Cornwells Heights operates weekday service only.

Contracted Services Provides management oversight and compliance of contracts between SEPTA and third party providers of fixed route services. Currently, it oversees the Route 204 service (Eagleview-Paoli Station) which operates seven days a week.

CONTROL CENTER - TRANSIT The Control Center – Transit is a centralized facility that manages the safe and efficient movement of subway/elevated, light rail trolley, and bus operations and provides customer service alerts to our passengers. All Control Center – Transit functions and associated equipment are located at SEPTA’s 1234 Market Street headquarters on the 19th floor. The Control Center –Transit personnel are responsible for ensuring that SEPTA’s established service levels are maintained 24 hours a day, 7 days a week.

PLANNING AND COORDINATION Works with internal and external groups on track outages, special events, weather events and other issues that require an integrated response by the Control Center.

RAIL TRANSPORTATION - REGIONAL RAIL Oversee all transportation, Regional Rail control center operation, customer service, station operation and service planning for the railroad system. The Regional Rail system includes 280 route miles and 13 lines or branches. Approximately 780 trains service a total of 155 stations per average weekday.

RAIL TRANSPORTATION - SUBWAY-ELEVATED

Transportation Subway-Elevated Transportation is organized into two sections: Market–Frankford Subway-Elevated (MFL) and Broad Street Subway (BSL).

The MFL operates 380 revenue trains each weekday between the Frankford Transportation Center and the 69th Street Terminal. The BSL operates 598 revenue trains each weekday between the Fern Rock Transportation Center and NRG Station as well as along the Ridge Avenue Spur.

Station Operations

Station Cleaning The Subway-Elevated stations group oversees the cleaning of 28 Market- Frankford Subway-Elevated stations, 25 Broad Street Subway stations, and 8 trolley stations. System Access and Customer Service The stations group oversees the Customer Attendants who assist customers with fare instrument purchases and navigation of the Subway-Elevated system.

93 | SEPTA FY 2021 Operating Budget Proposal

Operations

SURFACE TRANSPORTATION Operates surface transit modes throughout the five county service area with service originating from nine operating locations in the region. Each operating district has full responsibility for transportation service of the transit fleet in that location.

The nine operating districts operate a total of 120 bus, 3 trolley bus routes, 8 trolley (light rail) routes, and 1 interurban high speed (heavy rail) line. It should be noted that the number of bus routes identified by operating district in this section differs from the total number reported elsewhere, due to 12 bus routes that are operated out of more than one district as operating conditions necessitate. The 9 operating districts in Surface Transportation are:

1. Allegheny - operates 9 bus routes 2. Callowhill - operates 12 bus routes, in addition to trolley (light rail) Routes 10 and 15 3. Comly - operates 16 bus routes 4. Elmwood - operates trolley (light rail) Routes 11, 13, 34, and 36 5. Frankford - operates 13 bus routes and 3 trolleybus routes 6. Midvale - operates 23 bus routes 7. Southern - operates 17 bus routes 8. Frontier - operates 22 bus routes 9. Victory – operates 20 bus routes, 2 trolley (light rail) Routes 101 and 102, and 1 heavy rail Route 100

94 | SEPTA FY 2021 Operating Budget Proposal

Operations

Fiscal Year 2021 Goals and Business Initiatives

Fiscal Year 2021 BUSINESS INITIATIVES

I. Customer a) Support the City of Philadelphia’s Transit Plan including full Experience participation in the various CONNECTS committees and sub- committees. b) Work with the City of Philadelphia and University of Pennsylvania to improve congestion along the trolley diversion route during the trolley tunnel blitz. c) Implement service quality ride program on CCT. Identify areas of improvement in operator communication with customers, adherence to boarding and alighting procedures, overall operation of the vehicle, customer service. d) Use a multi-faceted approach to improving customer communications during delays, service interruptions, and detours including:  Improved service alerts from the Control Center Information Managers (CCIM) that are clear and concise. The alerts should be made often and include projections on when service will return to normal so that customers can make informed decisions.  Improve on-board communications between operators/crews and customers. Vehicle personnel should be giving verbal information to customers often and in the same manner as is being given by the Control Center.  Improve Rail Station and Bus Stop communication to customers. This includes information delivered by the CCIM’s as well as information delivered via signs posted, personnel assigned to the area and audible announcements.  Ensure that CCIMs and Railroad Announcers are properly mixing automated announcements with live announcements during service delays and interruptions.  Achieve 100% compliance for “Route Detoured” display on bus destination signs for detoured routes.  Improve detour announcements by Surface Operators to 90%.  Develop a comprehensive template for informational wayfinding for each project or abnormal service incident. e) Improve wayfinding throughout the system but especially:  Between interchanges at City Hall and 15th Street.  For Direct Bus at Frankford Transportation Center. f) Implement the Traveler Information System for CCT customers. g) Improve cleaning efforts throughout the system.  Subway/Elevated – continue to examine staffing levels and shift coverage. Establish a quality assurance program where Sub/El managers and CEA Service Quality Agents can score the cleanliness of our stations and facilities. h) Complete short, mid, and long range plan to address 2018 Customer Satisfaction Survey results. Strongly address the falling MFL/BSL scores.

95 | SEPTA FY 2021 Operating Budget Proposal

Operations

Fiscal Year 2021 Goals and Business Initiatives (continued)

Fiscal Year 2021 BUSINESS INITIATIVES

I. Customer i) Create and implement an operator/conductor sensitivity program Experience for working with customers with disabilities. (continued)

II. Employee a) Utilize the Employee Development Plans created in 2019 to Development develop succession plans and improve the manager’s overall performance through training opportunities and creative professional development methods. III. Rebuilding the a) Provide strong alternative service during construction efforts such System as the Southwest Connection Improvement Program – Phase 3 and the Trolley Tunnel Blitz. b) Continue efforts to improve Surface Bus reliability and increase ridership.  Participate in development of an enhanced Bus Network. IV. SEPTA is a a) Implement Phase 3 of Trapeze Ops within Surface and Business Subway/Elevated. b) Implement Train Plan scheduling software on Regional Rail.

V. Safety as the a) Successfully implement the Authority’s Safety Management Foundation System (SMS) in compliance with FTA regulations and the State Safety Oversight Program. b) Follow through on the Operational Safety Improvement Program (OSIP).  Identify and mitigate hazards associated with the entire operation. c) Works with Human Resources, System Safety, and the Labor Unions to implement a sleep apnea monitoring program.

96 | SEPTA FY 2021 Operating Budget P r o p o s a l

Operations

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Customer Experience a) Supported efforts to reduce fare evasion. Utilized multi- faceted approach including procedural changes, education and enforcement. b) Supported and advanced the roll-out of SEPTA Key for CCT and Regional Rail. Continued to monitor SEPTA Key performance on Transit. c) Ensured that Surface Control Center Managers achieved 90% compliance with the prescribed response time for Request-to-Talk (≤5 minutes), Priority-Request-to-Talk(≤2 minutes), and Emergency Alarms (<1 minute) initiated by Surface Operators. d) Utilized scorecard to rate events within the City of Philadelphia when considering SEPTA Surface Operations detours and service alterations. e) Worked with the Office of Innovation and the Temple University Graduate Program in the formulation of ideas for improved data management of bus performance. f) Improved the effectiveness and participation in the SEPTA Advisory Committee for Accessible Transportation (SAC). g) Improved janitorial cleaning efforts throughout the system.  Regional Rail – Ensured that cleaning contractors are performing to established criteria. Regular meetings held with contractor management; Joint site visits; and utilization of an established scoring system. h) Engaged potential CCT Connect participants as well as the participants’ caretakers and the general public in their typical environments to familiarize them with SEPTA’s services and encouraged them to use SEPTA fixed-route services. Performed an average of 4 outreach events per month. i) Continued meeting with advocacy groups for customers with disabilities to ensure that those customers’ needs are met and to foster understanding of SEPTA services. j) Discontinued Market Frankford Line A/B Skip Stop Service and increased service between 6:00PM and 8:00PM to boost service levels at stations experiencing ridership growth. II. Employee a) Met regularly with the Recruitment and Training Development Departments to increase the pool of available candidates and to ensure an adequate supply of Operators, Cashiers, Maintenance Custodians, and Regional Rail conductors and engineers. Vacancies filled as quickly as possible. b) Visited all Rail operating locations to promote recruitment into supervisory and first-level management positions for hourly personnel. Monitored and reported the successes or challenges of the program as candidates progressed.

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Operations

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

II. Employee c) Implemented new operator coaching and mentoring on Development Subway/Elevated. The program targeted new operators in (continued) their 60-day probationary period and included multiple ride-alongs by various Transportation Managers, AD’s, and Directors as well as periodic visits with the AD’s and Directors to review progress. d) Created a professional development plan for SAM Operations employees that included structured classroom training in both technical and soft skill development as well as practical application of learned concepts. e) Increased rate of participation of bus operators in refresher program to ensure 100% completion by the end of CY 2020. Continued refresher as a cyclical program offered to every operator once every three years. f) Improved employee engagement/satisfaction efforts through new campaigns and a greater awareness (24/7) of this goal by all managers. Established and promoted employee recognition programs and support the SEPTAcular peer-to-peer program.

III. Rebuilding the a) Provided strong alternative service during construction System efforts such as the Southwest Connection Improvement Program – Phases 1 and 2 and the Trolley Tunnel Blitz.

IV. SEPTA is a Business a) Implemented Phase 1 and 2 of Trapeze Ops within Surface and Subway/Elevated. V. Safety as the a) Followed through on the Operational Safety Improvement Foundation Program (OSIP).  Identified and mitigated hazards associated with the entire operation. b) Conducted Positive Train Control testing of foreign railroad engineers on SEPTA territory. Ensured that the system is fully functional and that each engineer is efficient in its use. c) Executed full-scale and tabletop exercises to:  Simulated train operations on BSL/MFL during Out-of- Service signal system conditions at Fern Rock  Trained field and Control Center managers on Incident Command System and handling inter-departmental emergencies.

98 | SEPTA FY 2021 Operating Budget Proposal

SEPTA

Vehicle Engineering and Maintenance

99 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Overview The Vehicle Engineering and Maintenance Division is responsible for the maintenance and engineering related to all Authority vehicles including buses, trolley buses, light rail, Market- Frankford and Broad Street Line, Regional Rail and Norristown High Speed Line cars and all non-revenue generating utility fleet vehicles and equipment. They also coordinate the procurement of ADA Paratransit and Shared Ride vehicles.

Bus Vehicle Engineering

Administration and Finance

Deputy General Manager Rail Vehicle Engineering

Vehicle Equipment Maintenance

100 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Maint. Total Administration and Finance 4 - - 4

Bus Vehicle Engineering 15 - - 15

Rail Vehicle Engineering 16 2 - 18

Vehicle Equipment Maintenance 170 33 1,539 1,742

Total Operating Headcount 205 35 1,539 1,779

CAPITAL HEADCOUNT Mgmt. Clerical Maint. Total Administration and Finance 1 - - 1

Bus Vehicle Engineering 11 - - 11

Rail Vehicle Engineering 23 2 - 25

Vehicle Equipment Maintenance 28 1 221 250

Total Capital Headcount 63 3 221 287

TOTAL HEADCOUNT Mgmt. Clerical Maint. Total Administration and Finance 5 - - 5

Bus Vehicle Engineering 26 - - 26

Rail Vehicle Engineering 39 4 - 43

Vehicle Equipment Maintenance 198 34 1,760 1,992

Total Headcount 268 38 1,760 2,066

101 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration and Finance $ 591 $ - $ 591

Bus Vehicle Engineering 1,555 2,998 4,553

Rail Vehicle Engineering 1,706 90 1,796

Vehicle Equipment 124,480 49,503 173,983 Maintenance Total $ 128,332 $ 52,591 $ 180,923

Bus Vehicle Maintenance Labor Expense & Headcount Trend $ In Thousands $60,000 1,000 $50,000 900 $40,000 800 $30,000 700 $20,000 600 $10,000 500 $0 400 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $52,274 $52,697 $54,089 $54,521 $57,923 $59,718 Headcount 956 959 959 953 953 953

Bus Vehicle Maintenance Material & Services Trend $ In Thousands $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $26,374 $25,232 $25,046 $25,951 $27,155 $27,155

102 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Rail Vehicle Maintenance Labor Expense & Heacount Trend $ In Thousands $70,000 1,100 $60,000 1,000 $50,000 900 $40,000 800 $30,000 $20,000 700 $10,000 600 $0 500 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $59,010 $59,872 $60,808 $63,056 $62,054 $64,762 Headcount 1,024 1,026 1,014 1,020 1,020 1,039

Rail Vehicle Maintenance Material & Services Trend $ In Thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $20,071 $24,886 $22,081 $20,349 $24,848 $22,348

Vehicle Engineering Labor Expense & Headcount Trend $ In Thousands $3,500 90 $3,000 80 $2,500 70 60 $2,000 50 $1,500 40 $1,000 30 $500 20 $0 10 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $2,238 $2,967 $2,723 $2,786 $2,571 $3,261 Headcount 70 72 72 70 69 69

103 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Vehicle Engineering Material & Services Trend $ In Thousands $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $3,609 $2,823 $2,429 $2,638 $3,088 $3,088

Principal Responsibilities

ADMINISTRATION AND FINANCE Coordinate and manage the financial and administrative activities for the Vehicle Engineering and Maintenance Division. Primary responsibilities include: the division’s operating budget; Vehicle Preventive Maintenance Overhaul (VOH) Program; analysis and reporting; Human Resource administration; and budgetary elements of Bus Vehicle Engineering, Rail Vehicle Engineering, and Vehicle Maintenance groups.

VEHICLE ENGINEERING

BUS VEHICLE ENGINEERING Oversees the engineering for bus, trolleybus, and non-revenue generating vehicle fleets. Responsible for the acquisition of new fleets of vehicles including bus, CCT, and utility vehicles.

Engineering Provides all engineering support including specifications, drawings, vehicle modifications, and system upgrades for all bus fleets. Investigates and resolves bus and fleet technical issues. Support is provided to heavy maintenance facilities and CCT vehicle maintenance.

New Vehicles Oversees the purchase of all new bus, trolleybus, CCT, and utility vehicles. Manages the procurement, production, inspection, acceptance, and contract deliverables (e.g. spare parts, manuals, and warranty administration) for various automotive vehicle contracts.

RAIL VEHICLE ENGINEERING Oversees the engineering for light rail, subway-elevated, and Regional Rail fleets and is responsible for all new rail vehicle acquisitions.

Engineering Provides all engineering support including specifications, drawings, vehicle modifications, and system upgrades for all rail fleets. Investigates and resolves rail fleet technical issues. Support is provided to heavy maintenance facilities.

104 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

New Vehicles Oversees the purchase of all new rail vehicles. Manages the procurement, production, inspection, acceptance, and contract deliverables (e.g. spare parts, manuals, and warranty administration) for various rail vehicle contracts.

VEHICLE MAINTENANCE

BUS MAINTENANCE Oversees all maintenance aspects for bus, trolleybus, and non-revenue generating fleets and responsible for bus and utility vehicle preventive maintenance overhauls.

Consists of the following nine locations:  Six (6) maintenance locations in the Philadelphia area  Victory in Delaware County  Frontier in Montgomery County  Contract Operations located in the Germantown section of Philadelphia

These nine locations are responsible for all aspects of daily maintenance, cleaning, inspection, and servicing for a fleet of over 1,500 vehicles.

Automotive Backshops Perform overhaul and heavy maintenance activities on bus, trolleybus, and non-revenue generating utility vehicle fleets.

RAIL MAINTENANCE Oversees all maintenance aspects for light rail, subway-elevated, and Regional Rail fleets and responsible for rail vehicle preventive maintenance overhauls.

Rail Equipment Maintenance Perform programmed vehicle and component overhauls of various Regional Rail fleets as well as the inspection, maintenance, and running repairs of the following rail fleets:

 MFL M-IV fleet at the 69th Street and Bridge Street Car Houses  Media-Sharon Hill Line LRV fleet at the MSHL Shop at 69th Street  Norristown High Speed Line N5 fleet at the NHSL Shop at Victory Avenue  BSL B-IV fleet at the Fern Rock Car House  Subway/Surface LRV fleet at the Callowhill and Elmwood Shops  Route 15 PCC-II fleet at the Callowhill Shop  The following backshops perform rail vehicle component overhauls:  69th Street Shop  69th Street Motor Shop  Fern Rock Shop  Woodland Shop

105 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Regional Rail Backshops and Yards Provide all maintenance and overhaul activities on the Regional Rail car fleet. The fleet is comprised of Silverliner 4 and 5 EMU (electric multiple unit) cars and non-powered coaches (push-pull) propelled by ACS-64 electric locomotives. Shop locations include:  Overbrook  Powelton Yard  Roberts Yard  Frazer  Wayne Junction

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Improve Customer and a) Improve the safety culture at SEPTA. Safety is the Employee Safety and foundation for all that we do. System Security b) Fully support new efforts to implement Safety Management Systems for VEM Division. Adjust headcount where necessary to support the Program. c) Support effort to enhance the NHSL On-Board ATC to reduce the reaction time to speed codes. d) Continue Market-Frankford Line bolster repair to achieve goal of 40 completed cars per year. e) Install operator security shields on bus fleet. f) Advance effort to procure simulators for rail transit mode. g) Continue implementation of audible bus turn warning system on bus fleet. II. Improve Service Quality a) Monitor MDBF performance of all vehicle modes and and Customer Satisfaction aggressively address adverse trends as they arise. Look for opportunities to improve performance, including the review of best practices from other transit agencies. b) Promote Standards of Excellence for cleanliness on vehicles. Expand programs to address night time and weekend service levels. c) Continue to advance Action Plan to aggressively address areas of improvement identified by the 2018 Customer Satisfaction Survey III. Support Capital a) Continue to support expanded capital construction Improvement Projects activities across the Authority by providing vehicles for bus substitution efforts. b) Support planning and preliminary engineering efforts for the trolley modernization program and the procurement of electric work cars. c) Continue to implement Market-Frankford Line capacity enhancement initiatives, such as interior seating reconfiguration and conceptual study for 8-car platforms. d) Support the roll-out of the SEPTA Key.

106 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

IV. Improve Employee a) Support the Women-In-Trades initiative. Satisfaction and Develop a b) Work to provide improved training for new managers. Highly Qualified Staff c) Develop a phased three year plan for increasing mechanic staffing, taking into consideration the newly acquired locomotives, the arrival of the multi-level railcar fleet, and the increase in bus fleet size. d) Continue to promote employee volunteerism through participation in programs such as Philly Spring Clean-up (April) and Yule Toy Drive (December). V. Improve Productivity and a) Support a program to reduce fare evasion across all Cost Effectiveness modes. b) Support recycling efforts as well as other critical sustainability initiatives. c) Continue with efforts to foster data driven management decision making. Work to create or improve data dashboards for the various groups in VEM. d) Support efforts to reverse ridership declines experienced on portions of the Surface network. VI. Support Ridership Growth a) Advance the following ongoing vehicle procurements: Efforts  Complete delivery of 525 hybrid bus order with New Flyer  10 additional battery-electric buses  45 multi-level push-pull rail cars for Regional Rail  Complete delivery of 225 CCT Paratransit vehicles b) Expedite Frazer Shop Improvement Program to prepare for new multi-level railcar fleet.

107 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Improve Customer and  Prepared facilities and provided Ambassador support Employee Safety and for major special events, including: Philadelphia System Security Flower Show, Broad Street Run and Philly Spring Clean-up.  Conducted regular safety meetings and supported the Joint Health and Safety Committee (JHSC) Process.  Analyzed movement of vehicles in all districts, shops and garages, particularly in the garage bays, and made recommendations to improve vehicle speed compliance.  Enhanced the Vehicle Quality Assurance and Quality Control Program with focus on safety critical items.  Reduced lost time injuries and accident rates by analyzing injury data to identify high risk areas.

II. Improve Service Quality  Supported installation of equipment on vehicles to and Customer Satisfaction provide real time vehicle location.  Continued improvement of fleet reliability.

III. Support Capital  Coordinated the impact of construction with alternate Improvement Projects substitute transportation to minimize customer complaints and service disruptions.  Supported the modernization of the CBTC (Communications-Based Train Control) system on the MSHL. IV. Improve Employee  Proactively addressed organizational turnover. Satisfaction and Develop a  Continued incremental improvement to workforce Highly Qualified Staff diversity among the organization.  Worked with Employee Development and Relations to develop and conduct workshops designed to increase and improve managers’ expertise in contract compliance, discipline assessment, and grievance handling. V. Improve Productivity and  Developed the Fleet Management Plan and monitored Cost Effectiveness its effectiveness towards maximizing the utilization of all fleets.  Managed warranty compliance in specifications for SEPTA’s new bus procurement contracts with OEMs and suppliers.  Advanced the evaluation of innovative vehicle technologies, focusing on energy savings.  Continued the conversion of incandescent to LED lights on all vehicle fleets.  Researched vehicle material upgrades to increase fleet durability and reliability. 108 | SEPTA FY 2021 Operating Budget Proposal

Vehicle Engineering and Maintenance

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

VI. Support Ridership Growth  Continued to advance the following ongoing vehicle Efforts procurements: 525 hybrid-electric buses 225 paratransit vehicles 45 multi-level push-pull railcars  Achieved key VOH production goals  Provided support for Trolley Tunnel Blitz

109 | SEPTA FY 2021 Operating Budget Proposal

SEPTA

Engineering, Maintenance and Construction

110 | SEPTA FY 2021 Operating Budget Proposal

Engineering, Maintenance and Construction

The Engineering, Maintenance and Construction (EM&C) Division is responsible for all engineering and maintenance related to the Authority’s stations, buildings, bridges, track, communications, and signal and power systems. The Division is also responsible for capital construction of both transit and railroad facilities and right-of-way elements.

Headcount

OPERATNG HEADCOUNT Mgmt. Clerical Maint. Total Administration and Finance 3 - - 3 Bridges and Buildings 61 9 304 374 Civil Engineering 4 1 - 5 Communications and Signals 28 38 143 209 Support Services 16 - 5 21 Power 40 11 130 181 Project Compliance - - - - Project Control - - - - Project Development - - - - Rail Facilities - - - - Real Estate 12 4 - 16 Track and Utility 33 6 241 280 Transit Facilities - - - - Total Operating Headcount 197 69 823 1,089

CAPITAL HEADCOUNT Mgmt. Clerical Maint. Total Administration and Finance 5 - - 5 Bridges and Buildings 29 1 110 140 Civil Engineering 5 - - 5 Communications and Signals 15 5 38 58 Support Services 17 - - 17 Power 21 1 38 60 Project Compliance 2 - - 2 Project Control 8 - - 8 Project Development 9 - - 9 Rail Facilities 12 - - 12 Real Estate - - - - Track and Utility 17 - 120 137 Transit Facilities 13 - - 13 Total Capital Headcount 153 7 306 466

111 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

TOTAL HEADCOUNT Mgmt. Clerical Maint. Total Administration and Finance 8 - - 8 Bridges and Buildings 90 10 414 514 Civil Engineering 9 1 - 10 Communications and Signals 43 43 181 267 Support Services 33 - 5 38 Power 61 12 168 241 Project Compliance 2 - - 2 Project Control 8 - - 8 Project Development 9 - - 9 Rail Facilities 12 - - 12 Real Estate 12 4 - 16 Track and Utility 50 6 361 417 Transit Facilities 13 - - 13 Total Headcount 350 76 1,129 1,555

112 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

A Deputy General Manager

Bridges and MaintenanceMaintenance ofof Administration Way Buildings Way and (B & B) Finance

B & B Project Civil Maintenance and Development Engineering Facilities Engr.

Rail Communications Project Facilities and Compliance Signals

Transit Project Facilities Power Control

Real Estate Track and Utility

Support Services

113 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration and Finance $ 519 $ 49 $ 568

Bridges and Buildings 29,008 7,983 36,991

Civil Engineering 335 95 430

Communications and Signals 17,567 2,719 20,286

Support Services 1,525 10,693 12,218

Power 15,015 1,599 16,614

Project Compliance _ _

Project Control _ 17 17

Project Development 53 _ 53

Rail Facilities 58 3 61

Real Estate 1,116 4,091 5,207

Track and Utility 19,040 3,332 22,372

Transit Facilities 223 4 227

Total $ 84,459 $ 30,585 $ 115,044

Note: Departments with minimal or zero dollars are funded through the Capital budget.

Engineering, Maintenance & Construction Labor Expense & Headcount Trend $ In Thousands $90,000 1,600 $80,000 1,400 $70,000 1,200 $60,000 1,000 $50,000 800 $40,000 $30,000 600 $20,000 400 $10,000 200 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $73,688 $75,067 $79,283 $77,321 $81,661 $84,459 Headcount 1,498 1,527 1,526 1,538 1,546 1,555

114 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

Engineering, Maintenance and Construction Material & Services Trend $ In Thousands $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $29,156 $28,963 $32,022 $30,443 $27,466 $30,585

Note: FY 2018 included unbudgeted facility maintenance costs that did not continue into FY 2019 and is not anticipated in FY 2020 and FY 2021.

Principal Responsibilities

ADMINISTRATION AND FINANCE Coordinate and manage the financial and administrative activities for the Engineering, Maintenance and Construction Division. Primary responsibilities include: the division’s operating budget; Infrastructure Safety Renewal Program (ISRP) development, analysis and reporting; Human Resource administration; Contract Management; and Asset Maintenance Management System development.

PROJECT DEVELOPMENT Develop conceptual designs, cost estimates, and Request for Proposal documents for design projects. Manage the awarded design projects through to completion of design phase. Provide cost estimating services for Divisional projects. Manage the coordinated advancement of construction on major projects such as the expansion of the Media/Elwyn Regional Rail line to Wawa.

PROJECT CONTROL Provide budgeting, cost control, scheduling, claims management, and capital program systems support to project management staff. Responsible for the centralized monitoring and reporting of SEPTA's Capital Spending Program, including the publication of the monthly Fiscal Year Capital Performance Report and the annual Fiscal Year Capital Spending Forecast.

PROJECT COMPLIANCE Provide Quality Assurance/Quality Control and oversight for the capital program. Responsible for the development and implementation of document control procedures and Project/ Construction Management Standards. Also prepares submittals for environmental and historical regulatory approvals.

115 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

SUPPORT SERVICES Support Services manages and supports all of EMC's external and internal customer service efforts ensuring that all EMC departments are responsive, aware of, and sensitive to issues affecting customers, neighbors, and stakeholders. Responsible for serving as a liaison with all external and internal customers outside EMC. Support Services also provides ongoing maintenance of employee locations that have received Facilities Improvement Team (FIT) remodels, ensuring that this substantial investment in workplace quality and morale is continually improved throughout the Authority.

BRIDGES AND BUILDINGS

Bridges and Buildings Maintenance/Facilities Engineering Provide structural, architectural, and mechanical engineering services. Perform all major force account construction projects and maintenance of stations, buildings, bridges, maintenance shops and electrical/mechanical infrastructure. Perform regular inspection of all bridges, tunnels, buildings, other structures, and fixed plant infrastructure.

Rail Facilities Capital Construction Manage the engineering and construction of capital projects for fixed plant facilities, including improvements to stations, track, signals, bridges, and parking facilities for Regional Rail operations.

Transit Facilities Capital Construction Manage the engineering and construction of capital projects for fixed plant facilities, including improvements to stations, maintenance facilities, and garages for transit operations.

MAINTENANCE OF WAY

Track and Utility Perform inspection, maintenance, and reconstruction of track and right-of-way areas. Provide track engineering and design services for all maintenance and renewal projects. Operate Track Shop to support requirements for routine and specialty track design and fabrication. Operate Midvale Utility Group, which oversees the deployment of non-revenue and utility vehicles.

Communications and Signals Perform regular inspection, testing, maintenance, and reconstruction of the signal system. Provide engineering and design services for all signals and communications maintenance and renewal projects. Perform all radio, telecommunications, and railroad communication maintenance. Manage the engineering and construction for capital projects involving communication and signals infrastructure.

Power Perform regular inspection, maintenance, and reconstruction of electric traction and signal power systems and electrical infrastructure. Provide engineering and design services for all related maintenance and renewal projects. Manage engineering and construction for capital projects involving power and electrical infrastructure.

Civil Engineering Provide civil engineering services for all maintenance and renewal projects. Provide coordination and oversight for public agency, utility, and private third party work on, over, or adjacent to SEPTA’s right-of-ways.

116 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

REAL ESTATE

Property Development and Acquisition This unit within the Real Estate Department manages real property dealings on behalf of the Authority, including carrying-out activities pertaining to the acquisition, development, leasing, and sale of SEPTA-owned properties. Department staff also works with external parties in the joint development of leased properties, undertaking of public improvements, the establishment of revenue generating utility occupancy arrangements, and the transaction of land and facility acquisitions that provide for and support infrastructure and ridership enhancements.

Headquarters’ Support Services Management/Administration This unit oversees office space planning, design and implementation, and day-to-day facilities management (performed by third party contractors) for SEPTA Headquarters at 1234 Market Street. Unit staff acts as liaison with contracted building operations management and SEPTA in-house labor. Coordinating the utilization of pool vehicles and the administration of all contracted vendateria services are also conducted by the staff of this unit.

Asset Management The key responsibility of the Asset Management unit is the use and maintenance of the Real Estate Management System which stores, organizes, and makes available an electronic version of real property documents, diagrams, and maps. The system can provide a property inventory, automated contract administration cues, and the generation of qualitative and quantitative reports.

Mail and Document Reproduction Services This unit manages the operation of the mail room and the performance of mail services in compliance with the applicable labor contract and U.S. Postal requirements. Staff also oversee and manage centralized document reproduction services.

117 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Rebuilding the System a) Control capital project spending by keeping costs within budget. b) Achieve targets for major capital project milestones for all architectural, engineering and construction projects. c) Pursue Project Control initiatives and General Engineering Consultant (GEC) contracts. d) Commence, advance, and complete all scheduled EMC Division ISRP projects. e) Maintain State of Good Repair database to provide a capital asset inventory and an analysis of capital investment backlog and investment alternatives. f) Advance design and construction projects under Building the Future Program, including new traction power substations, bridge and viaduct replacements/rehabilitations, station improvements, and maintenance facility roof replacements.

II. Sustainability a) Promote cost effective implementation of sustainability projects by incorporating Leadership in Energy and Environmental Design (LEED) and Energy Star design standards while adhering to budgets. b) Manage capital investments to reduce long term utility costs by completing energy efficient lighting improvement projects. Advance Guaranteed Energy Savings Projects (ESCO). Conduct energy audits to determine additional savings opportunities. c) Continue to improve material recycling programs at stations and operating locations. d) Continue the hardening of at risk infrastructure to combat severe weather events.

III. Safety and Security a) Conduct internal and external Safety Days to focus on employee and rider/public safety issues. b) Advance system modernization projects including Media/Sharon Hill Positive Train Control, Regional Rail and transit substations, 30th Street to Arsenal (Southwest Connection) interlocking catenary, signals and interlocking improvements.

118 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

III. Safety and Security c) Ensure ongoing infrastructure maintenance by (continued) ensuring strict compliance with all mandated standards, agency regulations and internal policies and procedures for rail and transit safety. Regular inspections and preventive maintenance to be performed in accordance with all codes, regulations and Original Equipment Manufacturer recommendations. d) Measure and monitor employee Injuries on Duty (IOD) lost time and establish target for future reductions.

IV. Expand System a) Advance projects that support ridership growth. Capacity b) Advance Frazer Shop expansion to accommodate new locomotives and multi-level coaches, and Elwyn to Wawa Regional Rail service restoration.

V. Customer Service a) Support customer service related operating and maintenance projects including: railroad snow removal, cleanliness of facilities, loops, and stations, maintenance blitzes at multi-modal transportation centers, maintenance to elevators and escalators to meet reliability targets, timely response to Veritas reports/Customer Service issues, and the coordination of maintenance and construction activities to minimize track outages. b) Support customer service related capital projects such as construction at Susquehana-Dauphin and Tasker-Morris Stations, Wissahickon Transportation Center, and Ardmore Station.

VI. New Technologies a) Pursue communications-based technological upgrades including wireless delivery of real time service information, cell phone access in SEPTA tunnels, Wi-Fi Internet access hotspots, and new asset management software.

119 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

VII. Human Capital a) Minimize employee turnover and improve hiring Development process management. b) Implement and encourage employee training through a Rotational Training Program for new entry level professional engineers, an elevator/escalator maintenance apprentice program, and full utilization of internal management training seminars. Support the AIM training and succession planning program. c) Assist the Division’s professional engineers in obtaining continuing education credits required to maintain Pennsylvania licensure. d) Continuously review and update the relevant skills qualification tests administered by Employee Development and Relations.

120 | SEPTA FY 2021 Operating Budget Proposal Engineering, Maintenance and Construction

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Rebuild the System  Continued the design of Substation Program, Wayne Junction Static frequency converter and 30th St. West catenary replacement.  Continued the construction of Railroad Substations under contracts 1 and 2.  Completed the Woodland Avenue Bridge replacement. II. Sustainability  Advanced ESCO Projects.  Completed Combined Heat and Power Project. III. Safety and Security  Continued the design of grade separated pedestrian access and station improvements at Lawndale Station.  Continued the design of Security Improvements at Elmwood Shop. IV. Expand System  Advanced construction of Elwyn to Wawa service restoration Capacity project.  Advanced design for Frazer Shop and Yard Phase 3.  Advanced Preliminary Design for NHSL King of Prussia Line Extension. V. Customer Service  Completed ADA station improvements on the Market-Frankford Line at 15th Street, Margaret-Orthodox, and 30th Street Station Elevators. Completed station improvements at Levittown, Exton, and Secane on Regional Rail.

VI. New Technologies  Installed bridge monitoring program on three Media/Elwyn viaducts.  Asset Management Program implemented, and Infrastructure Maintenance Management System departmental roll outs continued. VII. Human Capital  Rapid Assimilation Program for new EMC SAM employees Development  Rotational Training Program for new entry level professional engineers  Supervising Hourly Employees Program  Tour de EMC Program  AIM training program for Assistant Directors

121 | SEPTA FY 2021 Operating Budget Proposal

SEPTA

Deputy General Manager/Treasurer

122 | SEPTA FY 2021 Operating Budget Proposal

Deputy General Manager/Treasurer

Overview The Deputy General Manager/Treasurer’s Staff includes divisional assistant general managers and department heads who are responsible for various administrative functions that support the operations of the Authority.

The Deputy General Manager/Treasurer’s Staff includes six departments that are reported upon in this section, namely Deputy General Manager/Treasurer Administration, Communications, Information Technology, New Payment Technologies, and Revenue Operations.

There are five divisions with assistant general managers who report within the Deputy General Manager/Treasurer Administration Department. The divisions they are responsible for include: Audit and Investigative Services, Employee Development/Relations, Finance, Human Resources, and Procurement, Supply Chain and Disadvantaged Business Enterprise. Details concerning these five divisions are summarized separately within this document.

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Maint. Total Administration 9 - - 9 Communications 10 5 3 18 Information Technology 67 5 - 72 New Payment Technologies 1 - - 1 Revenue Operations 109 44 48 201 Total Operating Headcount 196 54 51 301

CAPITAL HEADCOUNT Mgmt. Clerical Maint. Total Administration 1 - - 1 Communications - - - - Information Technology - - - - New Payment Technologies 6 - - 6 Revenue Operations - - - - Total Capital Headcount 7 - - 7

TOTAL HEADCOUNT Mgmt. Clerical Maint. Total Administration 10 - - 10 Communications 10 5 3 18 Information Technology 67 5 - 72 New Payment Technologies 7 - - 7 Revenue Operations 109 44 48 201 Total Headcount 203 54 51 308

123 | S E P T A F Y 2 0 2 1 Operating Budget P r o p o s a l

Deputy General Manager/Treasurer

Audit and Investigative Services *

Communications

Employee Development and Relations *

Finance* Deputy General Manager/Treasurer Administration

Deputy General Manager/ Human Resources * Treasurer

Information Technology

New Payment Technologies

Revenue Operations

Procurement, Supply Chain and Disadvantaged Business Enterprise *

.

The Deputy General Manager/Treasurer has five divisions and six departments that are direct reports. *Indicates divisions which are reported separately in this document.

124 | SEPTA FY 2021 Operating Budget P r o p o s a l

Deputy General Manager/Treasurer

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 1,609 $ 20 $ 1,629

Communications 1,332 757 2,089

Information Technology 6,559 6,421 12,980

New Payment Technologies 126 12,848 12,974

Revenue Operations 14,168 18,859 33,027

Total $ 23,794 $ 38,905 $ 62,699

Principal Responsibilities

COMMUNICATIONS Responsibilities include internal and external communications, including the development of customer information, brochures, posters and notices, system signage, wayfinding information, and maps. Manages the content, graphics, navigation, and editorial content for SEPTA’s public website and social media outlets. Develops new customer features and format for public website including real time service information and Smartphone apps. Responsible for the redesign and editorial content of the Authority’s employee Intranet site and new employee electronic newsletter – SEPTALife. Also responsible for preparing testimony, speeches, articles, General Manager communications and other correspondence. Directs the Art in Transit program and manages Graphic Services, Printing Services, the Sign Shop, Fulfillment Services, Communications and Website Management.

Printing Services and Sign Shop Serves as the internal print production operation for all Authority departments. Printing Services is responsible for printing approximately nine million transit schedules each year as well as customer brochures, posters, leaflets, maps, forms, corporate business cards, and stationery. The Sign Shop is responsible for producing facility and vehicle signs, decals, and banners, including system-wide transit stop signage.

Graphic Services Provides creative concept, design, layout, and pre-production services for all departments for a variety of projects including brochures, leaflets, posters, transit passes, maps, signage, marketing, and sales materials. Responsible for graphic design of SEPTA’s Internet and Intranet sites including specialty micro-sites.

Fulfillment Services Provides direct mail service to customers, internal SEPTA departments and constituents requesting bulk distribution of transit schedules, customer service notices, and other brochures and leaflets produced by the Authority. Manages production contract for schedules not produced internally.

125 | SEPTA FY 2021 Operating Budget P r o p o s a l

Deputy General Manager/Treasurer

Communications and Website Management Responsible for all customer and employee communications initiatives, including all SEPTA service and project related information using a variety of tools such as web, video, and social media. This unit is also responsible for the design, content, and management of the SEPTA website and social media tools.

INFORMATION TECHNOLOGY

Emerging & Specialty Technologies Provides the short and long term strategy, direction, management and implementation of the core enterprise architecture and critical operations systems for the Authority. Manage new technologies and the support of Control Center specialty technology systems, real-time systems and public-facing applications. Responsible for the strategic design and development of advanced web applications to service SEPTA customers.

Application Delivery Services Supports the development, integration, and implementation of new software systems to business units throughout the Authority. Responsible for the management and implementation of the Authority’s Enterprise Resource Planning (ERP) Suite beginning with HRIS and including Finance, Payroll, and Purchasing legacy applications. Maintains and enhances existing systems Authority-wide. This section responds to application software problems.

Cyber Security Manages and supports the effort of protecting customer and employee data from intrusion or data breach. Engages cyber security committee meetings with key stakeholders that focus on business applications, enterprise databases, operational systems, and fare collection to ensure protocols and procedures are in place to minimize the threat of intrusions, malware, and data breaches. Works with outside agencies and professional affiliations, including law enforcement, to aid in understanding new cyber security risks/threats and determining what remedies are available to protect and minimize the impact.

Infrastructure Services Provides computer operations stability and access security on a 7-day/24-hour basis including problem management, disaster recovery, technical infrastructure management/support and change control. Maintains the technology infrastructure necessary for business critical systems, including: enterprise e-mail services, Internet/Intranet access, payroll, materials management, general accounting, operations control centers, disaster recovery and business continuity. Supports enterprise data communication systems and the entire personal computer environment. Sets standards for hardware and software used across the networks and installs, supports and maintains the entire data network infrastructure. Oversight and management of the SEPTA Key Back Office Technical Infrastructure.

Records Management Responsible for developing and implementing records management systems throughout the Authority, including record retention schedules, storage, retrieval, digital archiving, and destruction protocols.

126 | SEPTA FY 2021 Operating Budget P r o p o s a l

Deputy General Manager/Treasurer

NEW PAYMENT TECHNOLOGIES Directs the multi-phase SEPTA Key Project to transform SEPTA’s aging revenue collection system into a modern, efficient, and convenient system for customer payment and agency collection of fare revenue.

REVENUE OPERATIONS

Revenue Transportation and Collections Manages the collection, transportation, and deposit of passenger revenues and fare instruments.

Revenue Services Ensures timely processing, counting, and reconciliation of passenger revenue, as well as the distribution of fare instruments.

Revenue Equipment Maintenance Performs preventive/corrective maintenance and overhaul of fare collection equipment and devices.

Revenue Engineering Provides engineering and design support for the revenue system including specifications, drawings, equipment modifications, and system upgrades.

Revenue Compliance Ensures that effective controls are in place to safeguard revenue and assets.

Regional Rail Revenue and Parking Oversees ticket sales, on-board fare collection and parking for the Regional Rail Division. Responsible for managing third party contractors for maintenance on all parking lots and garages. Also, pursues opportunities to expand parking spaces and function as the central coordinator for all parking related issues.

127 | SEPTA FY 2021 Operating Budget P r o p o s a l

Deputy General Manager/Treasurer

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. The Customer Experience a) Continue to improve the administration of responding to customers and Customer Service via VERITAS and other reporting mechanisms of customer issues. Continue to work on failure analysis reports and failure response time to improve customer satisfaction. b) Continue to achieve and exceed mean time between failures goals for existing fare boxes, kiosks and turnstiles. c) Identify and correct all revenue collections issues in an expedited manner. d) Collaboratively "Prepare for Service" during major special events such as: -Flower Show, sports events, etc. -Revenue support with Sales Operations e) Finalize SEPTA Key rollout on Railroad. f) Complete CCT Integration with SEPTA Key. g) Upgrade and open 30th Street AMTRAK 29th Street entrance. h) Continue the build out of more efficient real time tracking of vehicles (surface and rail). i) Complete the work needed to capture real time data for the MFL and BSS and present the real time information on the website, signage and mobile app j) Add parking feature to the SEPTA Mobile app for customer parking purchases k) Continue to work on the ability for mobile ticketing through the SEPTA Mobile App l) Add the ability for SEPTA Key Card in the Apple Wallet and Google Wallet for customers

II. Workplace Development a) Proactively address organizational turnover. and Support b) Continue to incrementally improve on increasing diversity across organizational business units. c) Proactively improve employees’ communications. d) Promote employee volunteerism through participation in Philly Spring Clean-up and Yuletoy Drive. e) Support Employee Wellness Programs. f) Promote honest and ethical conduct in workplace. g) Maintain and keep current the legacy enterprise applications such as Financial Suite, Payroll, Claims, and Purchasing system on mainframe system as new ERP initiatives are underway.

128 | SEPTA FY 2021 Operating Budget Proposal

Deputy General Manager/Treasurer

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

II. Workplace Development h) Complete the interview and documentation of and Support workflow processes for the Authority’s Human Resources Information System (HRIS). i) Test new application in development mode and make changes to fit organization processes. j) Rollout first phase of HRIS – Employee Central and Applicant Tracking.

III. Rebuilding the System a) Continue to support the advancement of the Key Program, especially in Regional Rail. b) Work with Project Team and Operations to insure customer use of fareline facilities and revenue equipment is not adversely impacted during the Key Program equipment installations. c) Support all construction projects on the system that will require adjustments to revenue collection procedures. d) Deploy bus loader handheld readers. e) Complete Regional Rail functionality including open lot parking and parking permits. f) Replace Smart Media Processors with EMV- compliant unit. g) Obtain PCI Certification. h) Complete AMTRAK/NJT integration with Key. i) Conduct pilot for PayGo functionality. j) Investigate replacement model for conductor handheld unit. k) Pilot student Key passes.

IV. SEPTA is a Business a) Continue to balance the budget and improve the economic efficiency of business processes. b) Encourage development and employee participation of all sustainability programs. c) Adhere to negotiated fair and equitable contracts. d) Work closely to satisfy the requirements of our main funding agencies. e) Continue to participate and be engaged with initiatives and activities involving the American Public Transit Association (APTA) and Pennsylvania Transportation Association (PPTA).

129 | SEPTA FY 2021 Operating Budget Proposal

Deputy General Manager/Treasurer

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

IV. SEPTA is a Business f) With deployment of SEPTA Key, evaluate Revenue (continued) Operations procedures to ensure protection of Authority revenues. g) Update SEPTA Key Incident Response Plan. h) Support SEPTA Key ridership and revenue reporting. i) Maintain productive working relationship with Amtrak, NJT and PATCO.

V. Safety as the Foundation a) Continue implementation of Employee-Focused Safety Campaigns, such as "Never Too Busy For Safety" b) Hold regular Safety Meetings, supporting Joint Health and Safety Committee Processes. c) Continue to refine plans in anticipation of extreme weather or emergency disruptions. d) Advance surveillance camera installations, maintenance and monitoring. e) Maintain high standards of reliability. f) Manage cyber security risk associated with new Information Technology platforms. g) Continue to develop new tools for Data Analysis and performance reporting. h) Evaluate need for additional surveillance camera coverage at fare lines and kiosks. i) Promote various safety campaigns.

VI. Cyber Security Initiatives a) Manage cyber security risk and PCI compliance associated with SEPTA Key. b) Continue vulnerability and penetration tests of external network and server resources. c) Harden the SEPTA technical infrastructure against cyber security and malware attacks. d) Continue the education of security procedures and awareness for employees.

130 | SEPTA FY 2021 Operating Budget Proposal

Deputy General Manager/Treasurer

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. The Customer  MTBF goals have been achieved on fareboxes and will Experience continue to achieve and exceed MTBF goals for existing kiosks and turnstiles as this equipment has not been fully accepted by SEPTA.  Staff schedule adjustments were implemented to better identify and correct all revenue collections issues in an expedited manner.  SEPTA Key rollout on City and Suburban Transit is substantially complete.  ERN commission agreement is complete.  CCT Integration is advancing.  Responsive website is substantially complete.  Identified and resolved bus issues with the SEPTA mobile app and worked with Communications and Signals (C&S) and Vehicle Engineering and Maintenance (VEM) on restoration of bus equipment issues.  Rolled out SEPTA Mobile App with SEPTA Key features in August 2019. Customers can log in, purchase products, autoload, use and add to travel wallet and review trip and order history. II. Workforce  Conductor training is underway. Development and  Employee Learning Plans completed for NPT staff. Support  Began installation of Wi-Fi at all SEPTA employee locations. Equipment received in summer of 2019. Working with C&S on remote location for Wi-Fi coverage for diagnostics, vehicle video and employee business access.  Completed the Human Resources Information System (HRIS) replacement purchase and began implementation. HRIS vendor and solution selected. Currently working with vendor and the Human Resources department on onboarding the new system. III. Rebuilding the  All Regional Rail station validators and parking payment System stations are installed.  29th Street fareline of 30th Street Regional Rail Station is installed.  Open Lot Parking pilot conducted.  Phase 2 of Regional Rail Station Waiting Room Security was awarded in January 2020. IV. SEPTA is a Business  Adopted a data driven approach to business decision making by utilizing data analytics and reports to be more efficient and effective.  Conducted weekly departmental briefings to communicate Key Performance Indicators (KPI) throughout the department.

131 | SEPTA FY 2021 Operating Budget P r o p o s a l

Deputy General Manager/Treasurer

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

IV. SEPTA is a Business  Currently in the process of overhauling all procedures to (continued) ensure protection of the Authority’s revenues with the deployment of SEPTA Key Project.  Ridership and revenue data has been significantly enhanced with Key system. V. Safety as the  Manage Cyber Security Risk associated with New Information Foundation Technology Platforms.  Continued to develop new tools for Data Analysis and performance reporting.  Evaluated need for additional surveillance cameras at farelines and kiosks.  Incident Response Plan updated.  Supported cyber security efforts on SEPTA Key system.  Advanced cyber security innovation team initiatives by continuing internal phishing campaigns and related security training.  Completed security review on ACS-64 locomotives with next steps to include the review of SEPTA external network resources.  Improved redundancy for services, applications and networks on SEPTA’s technical infrastructure by adding virtual servers and resilient networking in order to advance capabilities in high availability mode. Added backup internet service through Wyoming data center for applications that are hosted outside of the data center.

132 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Finance

133 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Overview The Finance Division develops and then monitors results for the Authority’s Operating and Capital Budgets, and federal, state, and local grants. The Division oversees all financial services, including the preparation of monthly and annual financial statements for outside stakeholders as well as the management of advertising contracts. Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Administration 6 - 6 Capital Budget and Grant Development 7 - 7 Financial Services 24 8 32 General Accounting 9 2 11 Operating Budget 9 - 9 Payroll 3 2 5 Revenue, Ridership, Advertising and Sales 26 26 52 Total Operating Headcount 84 38 122

CAPITAL HEADCOUNT Mgmt. Clerical Total Administration - - - Capital Budget and Grant Development 1 - 1 Financial Services - - - General Accounting - - - Operating Budget - - - Payroll - - - Revenue, Ridership, Advertising and Sales 2 - 2 Total Capital Headcount 3 - 3

TOTAL HEADCOUNT Mgmt. Clerical Total Administration 6 - 6 Capital Budget and Grant Development 8 - 8 Financial Services 24 8 32 General Accounting 9 2 11 Operating Budget 9 - 9 Payroll 3 2 5 Revenue, Ridership, Advertising and Sales 28 26 54 Total Headcount 87 38 125

134 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Capital Budget and Grant Development

Financial Services

General Accounting

Finance Chief Financial Officer Administration

Operating Budget

Payroll

Revenue, Ridership, Advertising and Sales

135 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 844 $ 10 $ 854 Capital Budget and Grant Development 534 3 537 Financial Services 2,295 666 2,961 General Accounting 809 317 1,126 Operating Budget 746 27 773 Payroll 349 2 351 Revenue, Ridership, Advertising and Sales 3,491 6,493 9,984 Total $ 9,068 $ 7,518 $ 16,586

Finance Labor Expense & Headcount Trend $ In Thousands $14,000 210 $12,000 180 $10,000 150 $8,000 120 $6,000 90 $4,000 60 $2,000 30 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $11,145 $10,580 $10,450 $10,890 $12,101 $9,068 Headcount 184 176 176 176 175 125

Note: Service Planning, and Strategic Planning and Analysis departments were transferred to the new Planning and Strategic Initiatives Division resulting in a reduction of 50 positions in Finance.

Finance Material & Services Trend $ In Thousands

$8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $2,296 $2,523 $4,245 $5,484 $6,612 $7,518

Note: FY 2018 to FY 2021 increase is primarily due to bank transaction fees which continue to rise with the increased rollout of the SEPTA Key Card.

136 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Principal Responsibilities

CAPITAL BUDGET and GRANT DEVELOPMENT Develop the annual Capital Budget and the twelve-year Capital Program. Prepare, maintain, execute, and monitor federal, state, and local grants from inception to grant close-out. Develop and maintain the transit capital projects of the regional Transportation Improvement Program (TIP). Provide oversight and prepare analyses of the Vehicle Overhaul Program (VOH), Infrastructure Safety Renewal Program (ISRP), and Transit Security Grant Programs. Also responsible for other special grant programs.

FINANCE ADMINISTRATION Coordinate, manage, and direct the activities of the Finance Division. Oversee the development and implementation of the operating and capital budgets, strategic business plans and sustainability plan. Manage financial reporting and develop revenue strategies and fare policies. Coordinate all long-range planning and service planning initiatives. Ensure that resources are used effectively to maximize capital investments and to maintain access to the capital markets on reasonable terms and conditions.

FINANCIAL SERVICES

Accounts Payable, Accounts Receivable, Billings and Cash Management Process vendor payments, ensure items processed are correctly recorded, generate all billing invoices, ensure that all receipts due are received and properly applied, and capture and report capital project costs. Provide accurate reporting and maintain accounting controls for operating receivables. Manage cash resources to ensure sufficient liquidity while maximizing investment income within a prudent level of risk.

Financing and Pensions Manage the Authority’s debt portfolio to ensure compliance with covenants of indentures and loan agreements and the timely payment of debt service. Analyze potential financing transactions and manage the negotiation and implementation of transactions utilizing public municipal debt markets or private placements and loan agreements. Negotiate pension investment management contracts, manage relationships with pension managers, and act as liaison among pension committee, consultants, and pension managers. Provide oversight of investment options and manager/fund performance of Employee Deferred Compensation Plan 457b assets.

Revenue Accounting, Operating Grants, Accounts Receivable and Fixed Assets Provide accurate reporting and maintain accounting controls for operating revenues, operating subsidy grants, route guarantees, and fixed assets. Prepare applications and billings for operating subsidies, provide pass-through funding to sub grantees and monitor compliance and accounts for capitalization and disposition of grant and non- grant property and related depreciation and contributed capital. Works closely with various teams to ensure the proper recording for the sales of boarding instruments and parking fees during transition from legacy fare system to SEPTA Key.

GENERAL ACCOUNTING Manage the Authority’s financial reporting and accounting activities in accordance with generally accepted accounting principles and governmental regulations. Produce timely and accurate financial reports and properly maintain the accounting system and related internal control structure, which includes managing the monthly and annual financial general ledger close process. Prepare and issue monthly financial and statistical reports to the SEPTA Board and senior management. Prepare required quarterly and audited financial reports that are issued to various financial institutions and government agencies that provide debt financing or subsidies to the Authority. 137 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

OPERATING BUDGET Develop a budget plan based upon an evaluation of each department's operating needs in relation to the Authority's overall available resources. Review and modify the consolidated results of all proposals to ensure that projected expenditures are balanced with projected revenues and subsidies. Develop annual operating budget document and multi-year financial forecast. Evaluate proposed financial commitments and personnel requests on an ongoing basis to ensure sufficient funding and adherence to budget. Oversee utility accounts including the review and approval of utility invoices for payment. Conduct monthly analysis to track and forecast financial performance.

Financial Reporting and Systems Maintain the Corporate Performance Management (CPM) software used to produce the annual operating budget at the expense object level and integrate with the mainframe environment. Support and train the departmental users of the budgeting system. Coordinate with Information Technology to produce, maintain and distribute monthly and annual internal financial reports.

Specialized Support Assignments Provide financial analysis and forecasting for substantive financial issues impacting the Authority including bargaining unit contract negotiations, propulsion power, utilities, fuel contracts and income generating contracts. Provide financial analysis for internal discussions and Board briefings.

PAYROLL Process the Authority’s payroll in a timely and accurate manner. Ensure that payroll-related data has been balanced and reconciled. Process all wage deductions and tax withholdings. Responsible for reporting of tax withholdings and all quarterly and annual tax returns. Prepares all bargaining unit contractual wage increases. Ultimately responsible for all payroll- related record keeping as well as verifying the reliability of the data.

REVENUE, RIDERSHIP, ADVERTISING AND SALES Form a centralized leadership capacity to coordinate multifaceted operations including revenue generation via fare media, parking garages, and non-transportation related advertising income. Monitors and officially reports ridership levels and affiliated revenues. Coordinate the Division’s participation in all financial, operational and customer facing aspects to further the advancement of the SEPTA Key Program.

Revenue and Ridership Management Develop and report monthly ridership and revenue levels. Manage all ridership and revenue data and issue reports as market conditions demand. Issue all required revenue and ridership reports to governmental and ancillary agencies. Develop and support all passenger revenue pricing and tariffs and incorporate data received from the SEPTA Key Program into the data stream.

Sales Administers and/or conducts the sale of all prepaid fare instruments within the SEPTA service area. Manage the daily operation of five full-service sales centers, the Transit Store, and the www.shop.septa.org and SEPTA Key web portals. Manages and coordinates sales to over 1,000 external sales venues such as corporate entities, school districts, and Social Service agencies. Validates and issues refunds and adjustments for lost rides and fare instruments. Works closely with various teams to ensure the effective transition from legacy fare system to new SEPTA Key media.

Advertising Responsible for administration of transit and Regional Rail advertising, which includes station naming, bus and railcar exterior wraps, station and interior vehicle digital screens, station and street level digital screens, and static posters. Responsible for administration of outdoor advertising which includes an extensive static and digital billboard network.

138 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. The Customer Experience a) Continue to nurture stakeholder relationships through periodic briefings with federal, state and local officials, Citizen Advisory Committee, Youth Advisory Committee, SEPTA Advisory Committee on Accessible Transportation, and other key stakeholder groups. b) Complete SEPTA Key rollout for Regional Rail, Parking Operations, Employer Portal, and CCT. c) Continue to provide Ambassador support for major events.

II. Employee Development a) Proactively improve employee communications. b) Continue to invest in workplace improvements.

III. Rebuilding the System a) Continue to develop, advance, and seek funding for a 12-year capital program that focuses on achieving a state of good repair. b) Advance the procurement of ERP Financial Suite

IV. SEPTA is a Business a) Continue to produce a balanced operating budget and improve the economic efficiency of business processes. b) Provide financial analysis to support labor contract negotiations. c) Increase ridership capacity in key growth areas and align additional parking capacity with regional transportation needs. d) Leverage investments to maximize ridership growth. e) Continue to advance Bus Network Optimization analysis. f) Pursue innovative financing techniques to advance state of good repair and other core capacity initiatives.

V. Safety as the Foundation a) Advance capital projects with safety as a key objective b) Continue implementation of employee-focused safety and security campaigns

139 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. The Customer  Launched TrailPass, Independence Day Pass and Rail Quick Experience Trip options for SEPTA Key. Also launched Corporate Partner Program to allow employers to reload employee Key Cards using pre-tax withholdings.  Entered new agreement to increase the External Retail Network from 500 locations to 1,500 locations available to purchase and reload SEPTA Key Cards.  Accelerated the issuance of Senior and Disabled Fare Cards along with replacements for lost/stolen cards.  Completed Social Agency Disposable Smart Media (DSM) Partners Program. Currently operating with multiple payment profile options, an array of 4 different fare media options and with over 730 agencies registered and participating. Program revenue almost doubled, increasing from $4.2 million to over $8 million.

II. Workplace  Developed partnerships with community groups, business Development and associations, transportation agencies, and other Support stakeholders to evaluate opportunities to serve new markets. III. Rebuilding the  SEPTA secured several competitive awards to advance System projects that will rebuild the system. SEPTA was awarded a federal Bus and Bus Facilities grant in the amount of $2.5 million for Direct Bus Phase B, which includes the design and construction of 8 enhanced bus stations to extend SEPTA’s Roosevelt Boulevard Direct Bus Service from Frankford Transportation Center to Wissahickon Transportation Center. The enhanced bus stations will improve overall site conditions at each location including accessibility enhancements, lighting, landscaping, and real-time information. In partnership with the City of Philadelphia, SEPTA launched Phase A of Roosevelt Boulevard Direct Bus service in October 2017. Eight new bus stations were constructed from Neshaminy Mall in Bucks County to Frankford Transportation Center in Philadelphia. The service features elements of Bus Rapid Transit including limited stop spacing and specially-branded stations and buses. Based on SEPTA’s Route 14 service, Direct Bus provides a more efficient trip (28% travel time decrease) and higher frequency (10-15 minute headways 15 hours/day). SEPTA was awarded $1 million in VW Class 8 Vehicle Program funds to replace old utility vehicles with vehicles using cleaner technology. A $3.8 million federal award was secured to purchase environmentally friendly replacement work locomotives that will be operated throughout the five county region.

140 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

III. Rebuilding the  Consistent with SEPTA’s mandate to seek alternative System sources of revenue in support of transit operations, revenue (continued) generation continued from the sale of digital advertising at station, on vehicles and through long term agreements with billboard companies. SEPTA has executed agreements to expand its digital presence at stations in conjunction with the execution of option years with its advertising contractor. This will consist of digital expansion to almost every Regional Rail station throughout the service area. The delivery of a new bus fleet continues with each bus equipped with 2 digital screens and Wi-Fi capability. A total of 525 buses equipped with 1,050 screens will be delivered by the year 2021.  Additional revenue was generated from agreement with the University of Pennsylvania Health System to re-name University City station to Penn Medicine  Secured Board adoption of a balanced comprehensive twelve year capital program.  Completed software upgrade of the Operating Budget financial system. IV. SEPTA is a  Successfully produced a balanced operating budget for the Business 20th consecutive year.

V. Safety and Security  SEPTA was awarded a Federal Operation Life Saver grant as the Foundation which is designed to educate the traveling public about warning signs and risk factors for suicide in order to increase awareness and self-efficacy for assisting Veterans and First Responders in need.  Continued to include funding for the Bus and Trolley Operator Safety Shields project in the Twelve Year Capital Program. Installation of these shields will help protect the operator in the event of an emergency. The shields will be installed on SEPTA’s bus, trolley, and Norristown High Speed Line vehicles.  Continued to include funding for the Vehicle Overhaul Program, which provides for the systematic replacement or upgrade of systems on SEPTA’s rolling stock. Prudent fleet management requires a program of preventive maintenance for optimal fleet reliability, service quality, efficient performance, and passenger comfort.  Continued to include funding for the Infrastructure Safety Renewal Program which provides for the restoration by SEPTA forces of SEPTA’s City and Suburban transit and railroad infrastructure to a state of good repair. Programs include Track and Right of Way Projects, Station facilities, Communications and Signals, Power Systems, and Maintenance/Support Facilities.

141 | SEPTA FY 2021 Operating Budget P r o p o s a l Finance

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

V. Safety and Security  SEPTA was selected to receive a $4.2 million grant from the as the Foundation Federal Emergency Management Agency (FEMA) to fund (continued) specialized transit police units. These units are deployed to protect critical infrastructure and customers from acts of terrorism and other emergencies. This award also funded the installation of security fencing at the Fern Rock Complex which stores and maintains SEPTA’s Broad Street Subway fleet; and the purchase of Cyber Security Software. In addition, the Authority secured $500,000 from the Department of Justice for SEPTA Transit Police Body Worn Cameras.

142 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Planning and Strategic Initiatives

143 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

Overview The newly created Planning and Strategic Initiatives Division oversees Innovation, Service Planning and Strategic Planning and Analysis. These departments advance development of business data assets, analysis and development of strategies and goals in the Authority’s Strategic Plan, development of strategic communications and outreach that are necessary in implementing the Authority’s Strategic Plan, coordination with regional planning partners, long range planning, community and station area planning, advancement of major planning and expansion projects, management and improvement of transit service, and the Annual Service Plan. This work includes facilitating business innovations that stem from the strategic plan and sustainability program plan, often acting as a business analyst for interdepartmental corporate initiatives and long-term capital and service planning project activities.

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Administration 3 - 3 Office of Innovation 8 - 8 Service Planning 27 15 42 Strategic Planning and Analysis 5 - 5 Total Operating Headcount 43 15 58

CAPITAL HEADCOUNT Mgmt. Clerical Total Administration - - - Office of Innovation - - - Service Planning - - - Strategic Planning and Analysis 1 - 1 Total Capital Headcount 1 - 1

TOTAL HEADCOUNT Mgmt. Clerical Total Administration 3 - 3 Office of Innovation 8 - 8 Service Planning 27 15 42 Strategic Planning and Analysis 6 - 6 Total Headcount 44 15 59

144 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

Office of Innovation

AGM Planning and Strategic Planning Strategic Planning and Analysis Initiatives Administration

Service Planning

145 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 425 $ 1 $ 426 Office of Innovation 607 825 1,432 Service Planning 2,605 236 2,841 Strategic Planning and Analysis 465 2,722 3,187 Total $ 4,102 $ 3,784 $ 7,886

Principal Responsibilities

OFFICE OF INNOVATION

Data-Driven Decision Making Works with business units to develop, track, and report on Key Performance Indicators that measure progress towards strategic goals and objectives. Consult with those business units to develop forward-looking master plans to better align policies, procedures and practices with SEPTA’s Strategic Business Plan.

Sustainability Manage an award winning Sustainability Program based on a triple-bottom-line (economic, social, and environmental) approach. Focus areas include energy conservation, renewable energy, and waste management. Communicate progress on Sustainability Program key performance indicators and specific initiatives through the SEPTA website at septa.org/sustain and an Annual Report called “SEP-TAINABLE” released each spring.

Policy and Value Proposition Develop presentation and communication materials that make the business case for increased investment in SEPTA, emphasizing transit’s value proposition to drive economic growth, promote equity, advance sustainability, and improve public health, safety and quality of life. Collaborate with SEPTA Communications and Government Affairs to disseminate this information through brochures, presentations, and the SEPTA website at septa.org/strategic- plan/impact-report.

SERVICE PLANNING Plan and schedule service for City and Suburban (Victory and Frontier) transit division operations. Monitor and analyze route performance in accordance with applicable service standards to develop proposals for service improvements. Work with public and private partners to implement improvements to existing service and develop new service. Prepare the Annual Service Plan, which includes new service proposals and an annual economic review of all routes. Serve as liaison with city and county planning agencies, municipal governments, and Transportation Management Associations (TMA) regarding service planning issues. Coordinate tariff and public hearing process for all proposed route changes. Manage central transit shop database and Automatic Passenger counter (APC) data and reporting. Provide Authority-wide Geographical Information Systems (GIS) support.

146 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

STRATEGIC PLANNING AND ANALYSIS The efforts of the Strategic Planning and Analysis Department helps to create a shared vision for the future among the various communities, prioritizing capital funding, and the advancement of enhanced service.

Long-Range Planning Long-range plans emphasize comprehensive analysis of existing systems, ridership trends, and demographic analysis to make strategic investments to serve current and future transit needs. Such long-range plans include studies of rail system expansion, existing facilities improvements to support long-term growth, and analysis of bus service networks.

Municipal and Regional Plan Coordination SEPTA currently participates in many comprehensive plans, transportation studies, neighborhood plans, streetscape designs, and station area or Transit Oriented Development (TOD) plans. All of these studies impact SEPTA and customers in some manner, from how a roadway functions, to envisioning new development at a train station, to recommending new or improved service concepts.

Comprehensive Station and Service Analysis This type of plan enables high-quality, community-supported improvements to SEPTA stations and service. Comprehensive plans look holistically at infrastructure and service, not only to improve the customer experience and increase ridership, but also to identify ways to encourage economic development and improved multi-modal (pedestrian, bicycle, bus, and vehicular) access.

Strategic Business Plan SEPTA adopted its most recent 5-year Strategic Business Plan in 2014. This plan establishes a vision, mission, core values, and set of corporate objectives for strategy development for the Authority. SEPTA is currently developing an update to the plan.

Major Planning Programs SEPTA is currently advancing several major planning programs, including Comprehensive Bus Network Redesign and Trolley Modernization. These projects are multi-disciplinary programs that will span several years and will require multiple SEPTA departments to work together to advance, as well as significant public outreach.

147 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. The Customer Experience a) Focus on strategic initiatives to improve transit service reliability and route changes to address changing ridership levels.

II. Rebuilding the System a) Support prioritization of capital projects b) Support inventory control initiatives in partnership with Procurement and Supply Chain Management

III. SEPTA is a Business a) Develop long-range plans to prioritize future system improvement and expansion opportunities. b) Continue to advance Comprehensive Bus Network Redesign and Trolley Modernization programs. c) Support efforts to reduce downtown congestion through partnering with the City of Philadelphia and Center City District on innovative solutions. d) Continue to implement Energy Action Plan e) Advance Ridership Growth Innovation Team initiatives f) Publish Economic Impact Analysis and associated materials

IV. Safety as the Foundation a) Implement new project proposals from the “Frequent Rider”, “Occasional Rider” and “New Rider” working groups, using the results of the Customer Satisfaction Survey as an important input for brainstorming and project development.

148 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. The Customer  Schedule adjustments made to over 60 routes to address on- Experience time performance and changing ridership patterns through a re- allocation of buses and manpower within available Operating Budget.  Increased frequency on the Market-Frankford Line between 6pm and 8pm to respond to changing ridership patterns.  Bus Route 131 weekend service added to help support several 24/7 employers and service initiated to the Shannondell retirement complex.  Continued to update the Frequent Route Network map and related timetable re-designs.  Completed the Alternative Analysis and Draft Environmental Impact Statement (DEIS) for the King of Prussia Rail Project. The King of Prussia Rail Project is an extension of the Norristown High Speed Line to the King of Prussia area in Upper Merion Township, serving the King of Prussia Mall, Business Park and residential communities of this part of the region. The DEIS document was released in October 2017, and SEPTA Board adopted the Locally Preferred Alternative in January 2018. Work on the Final Environmental Impact Statement has begun, and will continue through 2020. SEPTA has concurrently advanced engineering work to 15% complete.  Developed innovative transit maps that show SEPTA’s bus network by frequency, and serve to promote our routes that have a frequency of 15 minutes or less, 15 hours per day and 5 days per week. The transit maps will be crucial communication tools through the upcoming Comprehensive Bus Network Redesign process.  Progressed planning and analysis efforts for SEPTA’s Trolley Modernization program, including line-by-line stop/station analysis and external plan coordination.

II. Workplace  Published Welcome Book and began to distribute as part of Development and revamped New Employee Orientation process Support

149 | SEPTA FY 2021 Operating Budget P r o p o s a l Planning and Strategic Initiatives

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

III. SEPTA is a Business  Finalized Ridership Growth Innovation Team strategic plan and began to implement  Tracked progress towards implementation of recommendations in management reviews  Published “cost of congestion” study  Advanced major sustainability initiatives, including solar projects, energy efficiency initiatives, and a battery- electric bus master plan  The Ridership Growth Working Groups looked at several issues related to detours, language barriers and customer experience. The display of “Route Detoured” text on the electronic destination signs was implemented and further work continues on how to address the needs of persons with limited English proficiency.  Continued to implement the Five-Year Strategic Business Plan, and began work to update the next Five-Year Strategic Business Plan.  Participated in numerous comprehensive long-range plans involving SEPTA assets throughout the region, including the DVRPC 2050 Connections Plan, the City of Philadelphia Connect Plan, City of Philadelphia District Plans, County Comprehensive Plans, and local municipality comprehensive and station area planning. Plans identify Greater Philadelphia’s vision for land use, the equipment, economic development, equity, and transportation.

150 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Employee Development and Relations

151 | SEPTA FY 2021 Operating Budget P r o p o s a l Employee Development and Relations

Overview This business unit was newly created in Fiscal Year 2017 with a focus on training, personnel development and employee relations for our administrative, management and bargaining unit employees.

Career Resource Connection

Administration EEO/AA and Employee Relations Assistant General Manager Employee Development and Relations Labor Relations

Training and Development

Headcount

OPERATING HEADCOUNT Mgmt. Maint. Total Administration 6 - 6 Career Resource Connection 2 - 2 EEO/AA and Employee Relations 6 - 6 Labor Relations 8 5 13 Training and Development 106 - 106 Total Headcount 128 5 133

152 | SEPTA FY 2021 Operating Budget P r o p o s a l Employee Development and Relations

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 1,058 $ - $ 1,058

Career Resource Connection 112 60 172

EEO/AA and Employee Relations 522 14 536

Labor Relations 1,151 265 1,416

Training and Development 9,169 747 9,916

Total $ 12,012 $ 1,086 $ 13,098

Principal Responsibilities

CAREER RESOURCE CONNECTION (CRC) Serves as a centralized operation and resource for external candidates interested in joining SEPTA and/or learning about job opportunities, and equips internal employees with resources to further develop and manage their career paths including career coaching and counseling. In addition, the CRC supports the Recruitment Department in pre-employment assessment/ selection by scheduling and conducting pre-employment assessments, interviews and New Employee Orientation (onboarding) sessions. The CRC also works interdepartmentally with hiring managers to assess and provide job task analysis and assessment overhauls.

EQUAL EMPLOYMENT OPPORTUNITY / AFFIRMATIVE ACTION / TITLE VI AND EMPLOYEE RELATIONS (EEO/AA&ER) Implements and oversees the Authority’s policies related to equal employment opportunity, anti-discrimination, and diversity and inclusion to address the needs of an increasingly diverse workplace.

Diversity and Inclusion Initiatives Promotes employee engagement, inclusivity and a celebration of diversity through trainings, workshops, targeted discussions and other activities.

Anti-Harassment Trainings Provides education and training for employees on harassment prevention, protected classes and workplace violence.

Hiring and Promotion Ensures compliance with SEPTA’s EEO/AA Policies and the Federal Transit Administration’s (FTA) regulations with respect to fair and equal practices in the hiring, interview and promotion of SAM employees.

SAM Discipline and Appeals Provides guidance and oversees the administration of discipline and performance improvement plans to ensure fair and consistent application of the Discipline and Appeals Policy.

153 | SEPTA FY 2021 Operating Budget P r o p o s a l Employee Development and Relations

Accommodations Provides accommodations for those whose disability, religious beliefs, observances or practices conflict with a specific task or requirement of the position or an application process.

Investigations Responds to complaints of discrimination/harassment filed internally and externally. Handles a wide variety of employee relations issues as well as workplace trainings.

LABOR RELATIONS Conducts all labor negotiations with the bargaining units, handles all grievances, arbitrations, unemployment claims, and Labor Board cases.

Negotiations Serves as lead negotiator for all labor agreements with the Authority's collective bargaining units in accordance with State and Federal Laws.

Grievances, Arbitrations and Special Board of Adjustment (SBA) Hears all third level and Labor Relations step grievances and represents the Authority in all arbitrations, SBA Appeals, and related litigation. Serves as primary liaison with all attorneys retained on special arbitration cases or other litigation.

Case Presentation to the Pennsylvania Labor Relations Board (PLRB) Prepares and presents all cases associated with the PLRB as they are filed by bargaining units and the Authority.

Job Classification/Wage Administration Directs preparation of new and revised job descriptions for hourly classification and coordinates evaluations of bargaining unit positions and negotiates job restructuring and classification issues. Prepares and publishes all bargaining unit and non-supervisory wage rate manuals.

Contract Training Conducts relevant training of supervisors in bargaining unit contract interpretation and enforcement.

Joint Labor Management Relations Conducts joint productivity meetings with labor representatives to promote the safe, efficient, and economical operation of the Authority.

Unemployment Compensation Directs all internal Unemployment Compensation activities, including administration of all claims and representations of Authority positions in hearings and appeals.

TRAINING AND DEVELOPMENT Provides training programs to improve employee performance, teach new skills, or retrain employees as required to ensure that the work force has a comprehensive understanding of regulations, procedures, policies, and skills to perform their assigned duties. Responsible for the highest quality training and follow-up recertification programs for transportation, maintenance, and management employees.

154 | SEPTA FY 2021 Operating Budget P r o p o s a l Employee Development and Relations

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Implement a a) Support multi-transit agency Leadership Exchange Succession Development Program Planning b) Create a SAM on-boarding program to complement employee Process orientation c) Leverage simulators to improve efficiency of training staff

II. Provide a) Explore Apprenticeship opportunities in order to ensure Leadership for pipeline for trades positions Human Capital b) Support efforts of Tradeswomen including career counseling, Development outreach efforts and test preparation

III. Workforce and a) Work with the Training Department and Senior Directors to Development conduct a “needs assessment” and review training critiques to Support determine possible new areas of emphasis and innovations in training hosted by Labor Relations b) Continue Coaching/Counseling sessions in conjunction with the Training Department to assist employees with career and promotional coaching as well as business and career tips c) Implement “Study Group” sessions to assist employees with testing preparations for the Apprentice Program d) Move forward with the evaluation of the Engineer and Conductor “fit”’ tests to determine whether SEPTA should adopt these tests for incoming trainees e) Support efforts to create new on-boarding program for SAM Employees

IV. Safety and a) Labor Relations continue its active role in Operational Safety Security as the Improvement Program to support Operation’s efforts to Foundation improve safety on City rail. b) Continue to provide a secure and confidential testing environment for internal and external candidates.

V. Customer a) Review Career Resource Connection (CRC) Testing Service processes to see where it can incorporate additional Experience streamlining and increase maximum potential. b) Coordinate with recruiting high stake campaigns (i.e. West Philadelphia Skills Initative and Electrical Internships) c) Continue to conduct monthly business meetings with recruitment in order to continue to cohesively align overall organizational goals and objectives as well as identify upcoming issues or recruitment campaigns needing additional testing resources.

155 | SEPTA FY 2021 Operating Budget P r o p o s a l Employee Development and Relations

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

V. Customer d) Enhance the “resource:” aspect of the CRC by implementing Service Computer Familiarization sessions as well as implementing Experience innovative and creative ways to utilize the CRC for increased (continued) team building and outreach for employees.

VI. SEPTA as a a) Continue process of reviewing assessments to ensure Business alignment with job descriptions. b) Publish updated testing and retesting guidelines and procedures to ensure accuracy in preparation for publishing to the new Intranet. These guidelines help to address questions about deviations to testing protocols and practices.

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Implement a  Developed and launched an Employee Development Plan. Succession Planning  Re-designed entry and mid-managers curriculum to be more Process interactive and competency/hierarchy based. II. Provide Leadership  Expanded employee support services outside of the Career for Human Capital Resource Center including test preparation, interviewing and Development resume writing for Regional Rail personnel at the Personnel Assignment Office.  Launched a micro site on the employee Intranet called “Knowledge Up” which provides short duration monthly educational topics. III. Customer Experience  Streamlined CRC-Testing processes to enhance Customer Experience waiting to take assessment from more than 20 minutes to less than 10 minutes.  Coordinated four high volume testing/recruitment campaigns (Bus Operator, Assistant Conductor/Engineer) in order to meet high recruitment demands.  Conducted monthly business meetings with recruitment in order to continue to cohesively align overall organizational goals and objectives as well as identify upcoming issues or recruitment campaigns needing additional testing resources.  Completed renovations within the CRC which includes interview rooms for skill trades and other frontline positions and career coaching.  Regularly attend trainings and webinars from the National Employment Law Institute, Equal Employment Opportunity Commission, and the PA Employment Law Institute to ensure SEPTA remains up to date on the prevailing case laws.

156 | SEPTA FY 2021 Operating Budget P r o p o s a l Employee Development and Relations

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

IV. SEPTA is a Business  Finalized contractual agreements with seven bargaining units.  Reviewed and updated testing and retesting guidelines and procedures to ensure accuracy in preparation for publishing to the new Intranet. V. Safety and Security  Coordinated with the Medical Department and Operations to as the Foundation establish a pilot Fitness for Duty program for NHSL and Media/ Sharon Hill operators and will coordinate communication with the union regarding the program.  Provided secure testing environment for internal and external candidates as well as maintaining confidentiality with test scores and integrity of testing assessments.  Implemented the newly integrated and secure Cloud-based testing platform (Questionmark OnDemand)  Initiated a Request for Proposals for a web-based training program in EEO and civility, which will be accessible to all SEPTA employees. VI. Workforce  Coordinated and instructed Labor Relations 101 and Development and Supervising Hourly Employee courses. Conducted specific Support Labor Relations training for Sub-El managers at the request of Operations.  Met as members and communicated with peers in the Labor Relations Association of Passenger Railroads and Transit Labor Exchange networks to look for new opportunities, innovative ideas, best practices and labor law developments with other passenger rail and transit agencies.  Coordinated over 120 Career Coaching/Counseling sessions in conjunction with the Training Department to assist employees with career and promotional coaching as well as Business and Career tips.  Hosted four Diversity and Inclusion sessions.  Led a series of LGBTQ awareness efforts to train Regional Rail management. Sponsored a table for the City’s annual Pride Parade and Outfest events.

157 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Human Resources

158 | SEPTA FY 2021 Operating Budget P r o p o s a l Human Resources

Overview The Human Resources Division provides recruitment and talent management, cost effective benefits and pension programs, handles salary administration and the human resources information systems, management of Authority policies and divisional budget, as well as directing the medical department and related programs. The Division is charged with recruiting new employees and helping them assimilate, grow, learn and remain productive assets to the Authority. Support is sustained from the onset of initial interest in the Authority, until long after their departure from employment.

Recruitment

Employee Benefit Employee Services Services Administration Strategic Initiatives Assistant General Manager Employee Medical Services Human Resources

Compensation/HRIS

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Administration 4 - 4

Employee Services 23 3 26

Employee Medical Services 5 10 15

Compensation/HRIS 5 4 9

Total Headcount 37 17 54

159 | SEPTA FY 2021 Operating Budget P r o p o s a l Human Resources

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 570 $ 6 $ 576

Employee Services 2,236 547 2,783

Employee Medical Services 1,116 261 1,377

Compensation/HRIS 674 45 719

Total $ 4,596 $ 859 $ 5,455

Human Resources Labor Expense & Headcount Trend $ In Thousands $14,000 180 $12,000 160 140 $10,000 120 $8,000 100 $6,000 80 $4,000 60 40 $2,000 20 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $12,368 $4,462 $4,040 $4,066 $4,206 $4,596 Headcount 159 53 53 53 53 54

Human Resources Material & Services Trend

$1,600 $ In Thousands $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $1,029 $699 $694 $709 $808 $859

Note: Human Resources was re-structured in FY 2017, resulting in the creation of a second department named Employee Development and Relations.

160 | SEPTA FY 2021 Operating Budget P r o p o s a l Human Resources

Principal Responsibilities

HUMAN RESOURCES TEAM The Authority’s dynamic business environment requires that Human Resources develop and implement employee initiatives that support the business strategy (HR Services) and sustain the needs of our employees amidst the consistently high operational tempo of transportation.

Human RESOURCES (HR) EMPLOYEE SERVICES Human Resources Administration focuses on Strategic Initiatives, Recruitment, and Employee Benefit Services.

Recruitment Direct and manage recruitment, hiring and transferring of a qualified and competent workforce ensuring equal opportunities by applying controls and compliance to applicable laws throughout the recruitment and hiring process. Continue to assure communication, documentation and a fair selection process in filling position vacancies.

Strategic Initiatives Identify, develop, foster and maintain working relationships with external workforce organizations, educational and non-profit institutions to build partnerships that create synergistic efforts to produce qualified work-ready employment candidates. Provide basic Human Resources support to SEPTA’s employee population on an enterprise-wide scale (HR Connection). Conduct research on new avenues to address human capital issues and provide feedback on trends and issues facing potential new hire populations. Inform management of new catalyst programs available to expand the sphere of potential employment influence the Authority has in developing skilled employees for future hire.

Employee Benefits Services Design, negotiate and administer the benefits program, including medical, dental, prescription drug, life insurance, long term disability, short term disability, supplemental insurance, COBRA, pension, deferred compensation (457b Plan), supplemental voluntary benefits, and flexible benefits programs for 30,000 individuals, including employees, retirees and families. Conducts benefit orientations and information sessions concerning all employee benefit programs.

EMPLOYEE MEDICAL SERVICES Execute, maintain and provide regular reports on the drug and alcohol testing requirements in accordance with Authority policy and U.S. Department of Transportation regulations.

Employee Medical Services Responsible for conducting medical examinations for fitness for duty, new hire physicals, medical monitoring/surveillance programs (e.g. hypertension, asbestos), hearing conservation, etc. as required by the Authority. Administer the Employee Assistance Program (EAP) for all employees and their dependents. Manage the Wellness Program and medical case management.

SEPTA Wellness Outreach Good health and wellness improves the quality of employees' personal and professional lives, can reduce workplace injuries, absenteeism, and health care costs, and enhance employee morale through individual and group participation. The wellness program develops efforts to raise employees' awareness about lifestyle behaviors that promote good health and prevent disease, and provide information and resources to assist employees to achieve their optimum mental and physical health.

161 | SEPTA FY 2021 Operating Budget P r o p o s a l Human Resources

COMPENSATION/HRIS Develop, communicate and administer the compensation program for supervisory, administrative and management (SAM) employees. Evaluate SAM positions utilizing the Hay Evaluation System. Update employee and position-related data in the personnel system, monitor and train employees on the use of the Human Resource Information System (HRIS). Maintain personnel files for over 9,500 employees. Verify current and past employment for employees, and handle inquiries regarding mortgage and car loans, lost wages, and other supplemental insurance coverage. Oversee the assignment of employee photo ID’s for new employees and the replacement of ID’s when reported lost or damaged. Prepare SEPTA-wide Organizational Charts.

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Human Resources a) Specific modules to be implemented include: Information System (HRIS) -Applicant Tracking System Updates -Core HR System -Organization Chart Software -On-Boarding Website

b) Begin enhancements to additional modules of the new HRIS that include: -Performance Management software -Learning Management System

II. Procure new 3rd Party a) Procure and implement new contracts for various, Benefit Contracts existing employee programs to include: -Actuary -Defined Benefit and Defined Contribution Investment Consultants -Dental Insurant for all SAM employees -Employee Assistance Plan (EAP) -Life and Long Term Disability -Medical Claims Audit -Catastrophic Stop Loss Insurance -Affordable Care Reporting

III. Monitor existing 3rd Party a) Conduct three audits related to medical claims, Benefits prescription drugs and retiree drug subsidies.

162 | SEPTA FY 2021 Operating Budget P r o p o s a l Human Resources

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Hire employees, replace  Hired over 900 employees and increased headcount to over retirees 9,500 the highest level in over 20 years. Won award for Best Employer of Choice. Held two Women in Trades Fairs. Attended numerous job fairs, and schools in all counties.

II. Monitor key vacancies  Installed new software predicting the number of employees that could retire by job and by year.

III. Improve wellness  Implemented first Tele-Dietician/Wellness coaches for greater access for our workforce. Expanded Sleep apnea exams for Railroad employees. Received Employer of Choice Award for best Wellness Programs IV. Build strategic alliances  Revitalized Co-op program with Drexel University, implemented to hire the best strategic partnership with West Philadelphia Skills Initiative employees (Center City District) to provide boot camp graduates into Bus Operator positions.

V. Improved processes  Implemented individual assessment for applicants with records that would have previously been disqualified.  Implemented New Deferred Compensation Program via Prudential. Prudential increased participation rate from low 40% to almost 50%. Won a national Award for best implementation communication program. Installed new Roth feature and outsourced loans.

163 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Procurement, Supply Chain and Disadvantaged Business Enterprise

164 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Overview The Procurement, Supply Chain & Disadvantaged Business Enterprise (PSC & DBE) Division is responsible for SEPTA’s procurement, materials management, compliance and quality assurance, supply chain management, contract administration, and disadvantaged business enterprise programs.

Assistant General Manager Procurement, Supply Chain & Disadvantaged Business Enterprise

Administration Contract Administration

Procurement and Supply Chain Disadvantaged Business Management Enterprise Program

165 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Maint. Total Administration 5 - - 5 Contract Administration 16 - - 16 Disadvantaged Business Enterprise 4 - - 4 Program Procurement and Supply Chain 66 63 1 130 Management Total Operating Headcount 91 63 1 155

CAPITAL HEADCOUNT Mgmt. Clerical Maint. Total Administration - - - - Contract Administration - - - - Disadvantaged Business Enterprise 5 - - 5 Program Procurement and Supply Chain 7 - - 7 Management Total Capital Headcount 12 - - 12

TOTAL HEADCOUNT Mgmt. Clerical Maint. Total Administration 5 - - 5 Contract Administration 16 - - 16 Disadvantaged Business Enterprise 9 - - 9 Program Procurement and Supply Chain 73 63 1 137 Management Total Headcount 103 63 1 167

166 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 590 $ 15 $ 605

Contract Administration 1,330 25 1,355

Disadvantaged Business Enterprise 307 32 339 Program Procurement & Supply Chain 8,637 307 8,944 Management

Total $ 10,864 $ 379 $ 11,243

Procurement, Supply Chain and DBE Labor Expense & Headcount Trend $ In Thousands $12,000 250 $10,000 200 $8,000 150 $6,000 100 $4,000 $2,000 50 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $9,409 $9,170 $8,794 $8,997 $10,579 $10,864 Headcount 162 162 162 162 164 167

Procurement, Supply Chain and DBE Material & Services Trend $ In Thousands $700 $600 $500 $400 $300 $200 $100 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $359 $410 $595 $340 $339 $379

167 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Principal Responsibilities

PROCUREMENT AND SUPPLY CHAIN MANAGEMENT

Compliance and Quality Assurance Provide coordination and enforcement of SEPTA’s compliance with federal, state, and local funding agency regulations for approved capital projects, planning studies, and other non-operating projects. Participate in updating standard form contracts, the procurement manual and related policy instructions. Provide analytical reports, system administration, enhancements, contract processing, records management, and training support for the department. Audit procurement packages pertaining to the Authority’s purchasing process and funding regulations. Monitor Certified Payrolls for all SEPTA construction projects in accordance with the Davis-Bacon and related acts. Administer Authority-wide programs such as e-procurement, electronic stockless stationery, Procurement Card, and the Materials Management/Purchasing system.

Materials Management (Automotive and Rail) Perform analysis, forecasting, and identification of inventory requirements to determine adequate stocking levels to effectively purchase/lease stock and non-stock rail and vehicle parts, material, equipment, supplies, and services, except for major vehicle procurements. Provide direct field support to maintenance directors and shop personnel. Coordinate Authority-wide inventory reduction and control programs. Maximize return on investment through Asset Recovery programs and long term, market-based scrap metal contracts. Perform inventory requirements planning for vehicle overhaul programs and various maintenance projects.

Materials Management (Infrastructure) Perform analysis, forecasting, and identification of inventory requirements to determine adequate stocking levels to effectively purchase/lease stock and non-stock infrastructure, material, equipment, supplies, and services. Provide direct field support to maintenance directors and shop personnel. Perform requirements planning for various capital project programs and various maintenance projects.

Supply Chain Management Plan and coordinate inventory requirements with all Operations areas to meet short and long-term material needs. Administer storeroom operations, warehousing and distribution functions, including receipt, storage, issuance and control of all stock materials for the Authority's diversified fleet of vehicles, for vehicle overhaul programs and for infrastructure maintenance requirements. Administer SEPTA’s Vendor Managed Inventory Program.

CONTRACT ADMINISTRATION Perform solicitations, contract awards, and post-award administration including change orders, dispute resolution and contract closeout. Administer contracts by overseeing vendors to fulfill contractual obligations.

Construction and Vehicle Acquisition Perform procurement and administration of project-specific architectural, engineering and associated construction-related services, new construction, and renovations of the facilities and structures. Responsible for solicitation, award and administration of large scale new construction projects as a result of Act 89 funding, infrastructure hardening and resiliency programs, as well as major equipment purchases, including rail and bus fleets.

168 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Professional and Technical Services Procure and administer revenue producing vehicles (buses and rail cars), employee benefits, insurance and associated passenger services such as paratransit and fixed route. Solicit, award, and administer professional services contracts including state and federal legislative services, advertising, brokers and lease and management services. Also includes technical services such as landscaping, janitorial, IT support maintenance and pest extermination.

DISADVANTAGED BUSINESS ENTERPRISE PROGRAM OFFICE (DBEPO)

Disadvantaged Business Enterprise (DBE) Certification Participates as one of five principal certifying agencies within the Commonwealth of Pennsylvania to provide one-stop shopping for firms seeking certification as a Disadvantaged Business Enterprise (DBE) in accordance with 49 CFR Parts 26 and 23. Represents the Authority as a managing member of the Commonwealth of Pennsylvania’s Unified Certification Program (PA UCP).

Small Business Enterprise (SBE) Program Administers the Small Business Enterprise Program to meaningfully involve small business concerns in procurement and contracting activities towards increasing the race-neutral portion of the Authority’s overall DBE goal.

DBE Compliance Reviews solicitations to ensure the meaningful involvement of DBE firms in the Authority’s procurement and contracting activities; establishes goals for applicable projects, evaluates bid/proposal submissions for adherence to DBE requirements, monitors projects for DBE goal achievement, and ensures equitable treatment of DBE firms performing on contracts.

DBE Program Outreach Provides technical assistance, guidance, and resources to all small businesses interested in pursuing contracting opportunities; coordinates internal and external outreach events; facilitates workshops and networking events for prime contractors, DBEs, and SBEs.

169 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. The Customer a) Conduct customer satisfaction survey. Experience b) Ensure timely delivery of stock materials. c) Achieve asset recovery d) Ensure inventory accuracy. e) Achieve optimum fill rate. f) Ensure minimum number of revenue vehicles out of service due to unavailability of materials (not to exceed 10 per month.)

II. Employee Development a) Conduct Division Tour and Procurement trainings. b) Update Procurement Manual

III. Rebuilding the System a) Develop and implement a SBE set-aside program.

IV. SEPTA is a Business a) Implement vendor performance program b) Monitor and improve turnaround time for solicitations/procurements c) Develop dashboards for monitoring division performance. d) Achieve inventory reduction. e) Achieve asset recovery

V. Safety as the Foundation a) Complete regular operations training and refreshers for storeroom personnel. b) Participate in safety events and initiatives.

170 | SEPTA FY 2021 Operating Budget P r o p o s a l Procurement, Supply Chain and DBE

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. The Customer  Achieved inventory accuracy of 81% for Light Rail; 88% for Experience Regional Rail, and 82% for Bus.  Hosted five DBE/SBE outreach events/workshops.  Disseminated contracting/networking/outreach related opportunities regularly via e-Blasts.  Published DBE Program Office Newsletters.  Annual average of the number of vehicles out of service due to material non-availability was 8.5 compared to a goal of less than 10 per month. II. Employee  Updated desk procedures and conducted cross-training Development sessions.  Conducted procurement training sessions.  Developed training videos for personnel.  Participated in professional development programs. III. Rebuilding the  Blanket contracts developed and implemented. System

IV. SEPTA is a Business  Cameras installed, configured and tested at 26 locations, many with connections directly to the headquarters; completed fencing at 3 locations.  Achieved $1.7 million revenue in asset recovery.  Streamlined/expedited procurement processes.  Implemented majority of the Management Consultant Study recommendations for the DBE Program Office.

V. Safety as the  Conducted operations training and refreshers regularly for Foundation storeroom personnel.  Conducted safety briefings at all material distribution centers.  Participated in safety events

171 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Audit and Investigative Services

172 | SEPTA FY 2021 Operating Budget P r o p o s a l Audit and Investigative Services

Overview The Audit and Investigative Services Division conducts audits, reviews, and investigations of the Authority’s operations to promote economy, efficiency, and effectiveness and to detect and deter waste, fraud, abuse, and mismanagement. The Division includes the Internal Audit Department and the Office of the Inspector General.

Assistant General Manager Audit and Investigative Services

Office of the Internal Audit Inspector General

Headcount

OPERATING HEADCOUNT Mgmt. Police Total Internal Audit 14 - 14

Office of the Inspector General 5 4 9

Total Headcount 19 4 23

173 | SEPTA FY 2021 Operating Budget P r o p o s a l Audit and Investigative Services

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Internal Audit $ 1,163 $ 27 $ 1,190

Office of the Inspector General 836 11 847

Total $ 1,999 $ 38 $ 2,037

Audit and Investigative Services Labor Expense & Headcount Trend $ In Thousands $2,500 25 $2,000 20 $1,500 15 $1,000 10 $500 5 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $1,387 $1,320 $1,393 $1,506 $1,656 $1,999 Headcount 20 20 20 20 20 23

Audit and Investigative Services Material & Services Trend $ In Thousands $60* System Safety function transferred to Division in FY 12 $50 $40 $30 $20 $10 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $42 $28 $32 $19 $52 $38

174 | SEPTA FY 2021 Operating Budget P r o p o s a l Audit and Investigative Services

Principal Responsibilities

INTERNAL AUDIT Internal Audit is an independent, objective, internal review and consulting activity designed to add value and improve the organization’s operations. It provides a systematic, disciplined approach to evaluate financial risk/exposure and improve the effectiveness of risk management, internal control, and governance processes.

Internal Audit conducts financial, compliance, and operational audits of departments within the Authority. The department is also responsible for the review of cost proposals and audits of cost reimbursement contracts and change order/claims. Additionally, Internal Audit provides a wide range of internal consulting support to departments upon request. The Department is comprised of Internal Audit, Information Technology, and Contract Audit sections.

Internal Audit Internal Audit is responsible for reviewing all areas within the Authority by performing formal audits of an entire process or independent reviews of a particular activity or account balance.

Information Technology A specialized sub-unit of Internal Audit that is responsible for reviewing new and existing computer applications, access security, and hardware. Independent data extracts and reporting support are also generated for Internal Audit and other divisions.

Contract Audit Contract Audit is responsible for auditing or reviewing third-party cost data in accordance with established policies and federal requirements. The work includes reviews of pre- contract cost proposals and audits of actual costs incurred on cost-plus-fixed-fee contracts. In addition, Contract Audit performs audits or reviews of cost documentation in support of change orders and claims.

OFFICE OF THE INSPECTOR GENERAL The Office of the Inspector General is responsible for conducting independent investigations relating to fraud, waste, abuse, and mismanagement. This is accomplished through continuous monitoring and investigations directed at specific concerns.

175 | SEPTA FY 2021 Operating Budget P r o p o s a l Audit and Investigative Services

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. SEPTA is a business a) Advance the goal of management accountability by identifying and formalizing requirements for areas determined to involve expenditures of Authority funds.

II. The Customer Experience a) Assemble a group representing Authority- wide individuals that have involvement with the communication, reporting or remediation of Elevator/Escalator outages to determine whether any efficiencies can be gained in the process.

III. Workplace Development and a) Assist in advancing the Authority Policy Support teams to update and develop policies that reflect the current needs of the Authority and compliance with federal safety requirements.

IV. Formalize the Investigative a) Use the enabling legislation, independent Services Department’s legal opinions, Authority policy and/or Board authority regarding workforce intervention to define the parameters of the cooperation. Investigative Services (Inspector General) authority in investigation matters.

176 | SEPTA FY 2021 Operating Budget P r o p o s a l Audit and Investigative Services

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments I. Develop a Statement  IT Audit developed a report showing General Ledger account of Changes as a changes which was used to develop the CY 2020 audit source for schedule. development of the audit schedule.

II. Determine the value  Significant cost involved to link data keys to achieve new and cost of reporting. Low cost alternative for a visualization tool in MS developing a data Tableau. New HRIS and planned migration to the cloud of warehouse for linking INFOR financials is a priority opportunity for data links. disparate systems

III. Pursue cooperation  Obtained two independent legal opinions confirming the role throughout the and authority of the Inspector General to require cooperation of Authority concerning all employees. investigation efforts by the Inspector General IV. Advance daily public  During FY 2020, outages were investigated from communications communication through remediation efforts with the objective impacting the disabled of determining the personnel involved and the reporting flow. community through Identification of the apparent communication gaps will move to facility inspection investigate remediation efforts. following reports of elevator/escalator outages V. Continuous  While not precipitated by the creation of system participation in the documentation, involvement with KEY as it relates to the Crew SEPTA KEY program Remittance Office (CRO) was initiated in FY 2020. User efforts to create the requirements were evaluated from an internal control system documentation and perspective. The Conduent design of KEY for the CRO will be identify areas for a focus for internal control in FY 2021. review

177 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Customer Experience and Advocacy

178 | SEPTA FY 2021 Operating Budget P r o p o s a l Customer Experience and Advocacy

Overview Customer Experience and Advocacy Division is responsible for the development, implementation, and coordination of SEPTA customer service and customer advocacy initiatives. The Division acts as the clearing house for all customer information gathered across various channels, for collecting “customer intelligence”, for advancing the Authority’s “Customer-Focused” agenda, and for performing consumer research to help the organization ascertain customer priorities, satisfaction levels, and overall loyalty.

Consumer Market Research and Analysis

Assistant General Manager Customer Customer Experience Administration Development and and Advocacy Advocacy

Customer Service Center

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Administration 4 - 4 Consumer Market Research and Analysis 2 - 2 Customer Development and Advocacy 4 - 4 Customer Service Center 14 60 74 Total Headcount 24 60 84

179 | SEPTA FY 2021 Operating Budget P r o p o s a l Customer Experience and Advocacy

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 389 $ 351 $ 740

Consumer Market Research and Analysis 151 - 151

Customer Development and Advocacy 304 - 304

Customer Service Center 4,912 12 4,924

Total $ 5,756 $ 363 $ 6,119

Customer Experience and Advocacy Labor Expense & Headcount Trend $ In Thousands $6,000 100 $5,000 80 $4,000 60 $3,000 40 $2,000 $1,000 20 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $4,919 $5,170 $5,076 $5,125 $5,628 $5,756 Headcount 82 84 84 84 84 84

Customer Experience and Advocacy Material & Services Trend $ In Thousands $500

$400

$300

$200

$100

$0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $425 $225 $418 $377 $358 $363

180 | SEPTA FY 2021 Operating Budget P r o p o s a l Customer Experience and Advocacy

Principal Responsibilities

ADMINISTRATION Coordinate, manage and direct the financial and administrative activities for the Customer Experience and Advocacy Division.

CONSUMER MARKET RESEARCH AND ANALYSIS Understanding the needs and expectations of a business’ customers is vital to success. This unit uses qualitative and quantitative research, plus audits by service quality staff, to support the goals of the Division as well as other SEPTA business units. It also oversees the Service Quality Unit, SEPTA’s “Secret Shoppers” that assesses all aspects of the Customer Experience, anywhere and anytime.

CUSTOMER DEVELOPMENT AND ADVOCACY This group advances the Customer Experience through interdivisional initiatives, customer outreach/engagement, and new market development. Department staff is responsible for leading the “Building a SEPTA Culture of Service and Creativity” (BASCSC) program, the Downtown Link Customer Experience, and the College Travel Center initiative. The Advocacy unit of Customer Development works with key stakeholder groups such as the Citizens Advisory Committee (CAC), Youth Advisory Council (YAC), and Delaware Valley Association of Rail Passengers (DVARP) and other transit advocacy groups, to foster transparency and broader customer involvement into the Authority’s decision making process.

CUSTOMER SERVICE The Contact Center is responsible for responding to customer issues and inquiries received via telephone, email, mail, fax and walk-ins concerning travel information, lost and found, complaints, suggestions, and commendations. It coordinates Authority-wide use and analysis of the Customer Relations Management (CRM) program VERITAS as a critical tool for better understanding customer expectations while also assisting internal units with their performance goals. The department also manages various “Social Customer Services” engagement channels on assorted social media platforms. The Contact Center is the primary conduit for coordinated activity with the SEPTA Key call center.

181 | SEPTA FY 2021 Operating Budget P r o p o s a l Customer Experience and Advocacy

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Nourish and advance a a) Using data from consumer research and the wide array of Customer- VERITAS database, provide reports and analysis to Focused initiatives GM Team and others regarding the customer concerns, issues and priorities. b) Work with other Divisions to ensure that the customer service agenda remains vital and relevant by closing out completed/obsolete initiatives and introducing new ones. c) Advocate for the inclusion of Customer Experience attributes in critical SEPTA initiatives such as SEPTA Key, Trolley Modernization, Comprehensive Bus Network redesign and the development of the SEPTA Concourse mode. d) Ensure customer-related design features are fully considered in facility and vehicle design, as well as modal services, through formal Customer Experience and Advocacy interaction. e) Expand and enhance relationships with transit advocacy groups.

II. Develop Customer- a) Provide leadership to culture change initiatives such Focused Workforce as BASCSC that emphasizes customer-focused decision making and innovation. b) Advocate, support and assist the development and adoption of divisional customer-focused organizational and personal goals. c) Recognize SEPTA team members that have made a significant contribution to customer satisfaction, peer support or gaining/sustaining customer loyalty. d) Design, implement and lead a new, interactive cultural training program, “Navigating the Customer Experience”, to promote self-awareness and team building.

182 | SEPTA FY 2021 Operating Budget P r o p o s a l Customer Experience and Advocacy

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

III. Employ technological a) Continue efforts to establish SEPTA as the industry advancements to leader in the innovative use of “social customer improve Customer service” across existing and new channels, which Service foster timely engagement and transparency. b) Provide enhanced real-time tools to Customer Service staff to allow accurate and timely dissemination of information. c) Continue to evolve organizationally from traditional Customer Service to a modern Contact Center that embraces “Customer Intelligence and Analytics” by employing non-traditional business models and emerging technology. d) Assess opportunities for innovative use of translation technology tools/software to allow staff to effectively communicate with those that are not proficient in either English or Spanish.

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Nourish and advance External Customer a wide array of  Increased customer engagement through the BASCSC “SEPTA Customer-Focused Customer Connection” program held at 11 different venues; Initiatives through the BASCSC Holiday Vehicle program and by Agent engagement at principle transit centers.  Advanced ongoing dialogue with colleges and universities to market SEPTA to students and staff as the preferred transportation option.  Advanced innovative new customer amenities such as the Regional Rail Parking Car Wash program, Books in Transit and Reading Terminal Market’s Jefferson Market Carts. Expanded the partnership with Mural Arts, and Music and Moves program.  Promoted and produced various SEPTA “Behind the Scenes” programs for schoolchildren and continued administrating the SEPTA Tours program.  Led efforts to revitalize the Concourse Customer Experience with special events such as UniverSoul Circus, Bach in the Subway, and the Suburban Station Holiday Program. Planned for the inaugural Great Philly Undercover Scavenger Hunt. 183 | SEPTA FY 2021 Operating Budget P r o p o s a l Customer Experience and Advocacy

Fiscal Year 2020 Accomplishments (continued)

FY 2020 Goals Accomplishments

I. Nourish and advance  Responded to approximately 1.3 million customer phone calls, a wide array of 185,000 customer inquiries at field offices, and over 35,000 Customer-Focused social media followers on several platforms. Initiatives (continued)  Supported various Stakeholder groups such as the Citizens Advisory Committee, the Youth Advisory Council, the Clean Air Council, 5th Square and others that promote public transportation.

Internal Customer  Expanded and promoted BASCSC employee recognition through SEPTAcular, GM Awards and other divisional initiatives.  Advanced activities under the BASCSC banner designed to improve morale and camaraderie, including Holiday Vehicle Competition, Family Day at Clementon Park, the Bowling Bash and GM Team Shadow Days.

II. Develop Customer-  Staff participated in training programs designed to consistently Focused Workforce support SEPTA’s Customer Service goals.  Implemented a new interactive class entitled Navigating the Customer Experience.

III. Employ technological  The Authority’s social media team continues to hold “Best in advancements to Class” status for its work centered on Twitter accounts improve Customer @SEPTA_Social and @SEPTAKey as well as its Instagram Service accounts and customer engagement on SEPTA’s Facebook page.  Tested an innovative “texting” platform to assess market potential in transit.  Advanced the use of a new English as a Second Language tool to assist individuals in communicating with staff.  Updated and refined the use of social media software tools that allow for more effective and efficient customer engagement.

184 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Office of General Counsel

185 | SEPTA FY 2021 Operating Budget P r o p o s a l Office of General Counsel

Overview The Office of General Counsel Division consists of the Corporate and Business Operations, Video and Intake Operations, Litigation, Corporate Litigation, Claims, and Risk Management Departments, all reporting to the Office of General Counsel.

Claims

Corporate and Business Operations

Administration Litigation

Office of General Counsel

Corporate Litigation

Video and Intake Operations

Risk Management

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Administration 8 - 8 Claims 16 11 27 Corporate and Business Operations 10 - 10 Litigation 29 - 29 Corporate Litigation 4 - 4 Video and Intake Operations 19 12 31 Risk Management 9 - 9 Total Headcount 95 23 118

186 | SEPTA FY 2021 Operating Budget P r o p o s a l Office of General Counsel

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 1,088 $ 20 $ 1,108 Claims 1,870 1,750 3,620 Corporate and Business Operations 950 6,081 7,031 Litigation 2,403 3,152 5,555 Corporate Litigation 335 2,429 2,764 Video and Intake Operations 2,024 1,869 3,893 Risk Management 715 36 751

Total $ 9,385 $ 15,337 $ 24,722

Office of General Counsel Labor Expense & Headcount Trend $ In Thousands

$10,500 120 $9,000 100 $7,500 80 $6,000 60 $4,500 $3,000 40 $1,500 20 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $7,769 $8,188 $8,437 $8,383 $8,979 $9,385 Headcount 115 118 117 117 117 118

Office of General Counsel Material & Services Trend $ In Thousands $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $16,644 $16,548 $15,611 $18,139 $15,337 $15,337

187 | SEPTA FY 2021 Operating Budget P r o p o s a l Office of General Counsel

Principal Responsibilities

CORPORATE Lawyers within the Corporate Department negotiate and draft legal contracts and other documents that support and promote the activities of client departments. Counsel advises management on matters that have legal implications, assists other departments in drafting documents that have legal-related elements, and works with outside attorneys handling matters involving specialty areas of the law. The Corporate Department is involved in all transactional legal matters such as those related to procurements, construction, technology contracts, real estate, environmental law, energy, sustainability, and railroads and property use.

CLIAMS AND INTAKE OPERATIONS Intake Unit is responsible for performing intake functions for all matters, claims and requests that come into the Office of General Counsel; seeking and compiling all information, data and records needed to handle all OGC matters; and featuring those functions associated with carrying-out the Authority’s video surveillance program. The video program includes planning, collecting, reviewing, preserving, storing and producing data from video systems on SEPTA vehicles and in stations. Staff within this Department also respond to and handle requests for, notification of, and production of employee witnesses for court matters.

Claims Unit is responsible for the handling of personal injury and property damage claims. Many claims are handled in tandem with attorneys in the Litigation Department, from first notice of the claim through its final resolution. Claim handling involves: thorough and detailed examination of evidence, a determination of liability and assessment of potential damages. The existence of pertinent video provides a key piece of beneficial evidence, one which often provides a dispositive defense to a claim. If the Authority is liable to an individual for injuries or property damage, then staff will attempt to settle the claim in an equitable and prudent manner. For claims where the Authority either is not liable or is not able to obtain a just settlement, the case is defended in court by the attorneys of the Litigation Department.

LITIGATION DEPARTMENT The Litigation Department is responsible for representing SEPTA in personal injury and property damage claims once a lawsuit is filed. Attorneys within the Litigation Department (as well as outside counsel who are managed by Department attorneys) handle all aspects of litigation from pleadings through discovery and up to and including trial. The attorneys evaluate cases and make settlement recommendations. When appropriate, the Department attorneys negotiate final settlements. The Litigation Department also handles appellate cases in the Commonwealth Court and Supreme Court of Pennsylvania on issues regarding SEPTA cases as well as others that may affect SEPTA as a mass transit agency and/or as a Commonwealth Party.

CORPORATE LITIGATION DEPARTMENT Lawyers within the Corporate Litigation Department represent SEPTA in civil actions that are other than personal injury and property damage. Corporate litigation actions include, labor and employment matters, civil rights cases, contracts and construction suits, and trademark registration and infringements. This Department also provides legal counsel to management on employment matters and statutes (including Title VI, ADAAA, ADEA, FMLA, FLSA, and USERRA) and employment concerns before state and federal administrative agencies. Additionally, staff within this Department handles the intake, response, and appeal of requests for Authority records submitted under the Pennsylvania Right-to-Know Law, third party subpoena requests for records and litigation holds. 188 | SEPTA FY 2021 Operating Budget P r o p o s a l Office of General Counsel

RISK MANAGEMENT The Risk Management Department manages SEPTA’s programs to compensate injured employees who have claims under the Commonwealth’s workers’ compensation laws or under the Federal Employers Liability Act (FELA). Department staff oversee a third party administrator of workers’ compensation claims, handling medical and indemnity management, coordinating internal vocational rehabilitation, and managing all alternative and transitional duty programs. Staff also administers supplemental benefits as prescribed by labor contracts. FELA Unit staff oversee a third party administrator of FELA claims which monitors, settles, and oversees litigation of claims of injured railroad workers. The Insurance Unit staff helps to manage the Authority’s exposure to risk under transactional situations, through the application of risk management tools such as insurance programs, self-insurance administration, performance bonds, and letters of credit. The Business Operations Unit within this Department is responsible for the administrative and business functions that support the Office of General Counsel (OGC), such as staffing and employment management, training, budget development, administering legal services contracts and managing office equipment and supplies.

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Expand upon the pilot a) Revive/update and implement guidelines to manage program developed tort claims assigned to outside counsel, wherein during FY 2020 to each matter in the Pilot Program is handled by a extend to all outside Claims Supervisor under the supervision of a Claims Counsel Cases Manager. b) All requests for surveillance, Insurance Medical Examinations or other experts will be directed to the Claims Supervisor for review and a summary with a recommendation given to the Claims Manager. c) Critical Event Review approach being used to target the following events:  New Case Assessments  Phone Conferences with Claims Supervisors  Case Management Conferences  Discovery Responses  Depositions  Settlement Conferences d) General Counsel and Deputy General Counsel will continue to oversee the litigation of these matters.

189 | SEPTA FY 2021 Operating Budget P r o p o s a l Office of General Counsel

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

II. Implement Document a) Corporate Staff will work with technology specialists Management for the to develop a SharePoint application that will be used Corporate Department to track, monitor, organize, and store the various using Share Point documents and other data for corporate legal matters. b) Application will have functionality to organize matters based on a unique identification scheme, to organize and store information by matter, to readily manage emails, to provide tickler reminders, and to allow for queries and reporting.

III. Improve FELA Claims a) Finalize transition of FELA program to new vendor. Management Process b) Document claims management process. c) Enhance early claims investigation practices to ensure all facts are frozen at the time of incident. d) Provide lost productivity data to key Railroad Management Staff.

IV. Develop a continuing a) Utilize capital expenses for replacement. plan to update Vehicle b) Secure contract for reliable maintenance and Video Program troubleshooting of video equipment.

190 | SEPTA FY 2021 Operating Budget P r o p o s a l Office of General Counsel

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Establish a pilot program for  Program has been successful and will be expanded to Managing of Tort Claims by cases handled by Outside Counsel. Claims Managers

II. Implement Document  Corporate staff are now using the SharePoint Management for the Corporate application to track, monitor, organize, and store the Department using SharePoint various documents and other data for corporate legal matters.

III. Take next steps in  This initiative remains ongoing. disseminating Litigation Loan  Revision to the FELA Claims Management program “Pitfalls & Dangers” education underway will include awareness on dangers of Litigation Loans.

IV. Develop a continuing plan to  This goal remains ongoing. update Vehicle Video Program  Formalized plan to regularly update equipment is currently being developed.

191 | SEPTA FY 2021 Operating Budget P r o p o s a l

SEPTA

Public and Government Affairs

192 | SEPTA FY 2021 Operating Budget Proposal Public and Government Affairs

Overview The Public and Government Affairs Division – comprised of Administration, Government and Community Relations, Marketing and Promotions, and Media Relations – is responsible for communicating the Authority’s official position on key issues, enhancing public perception, and developing campaigns that promote transit awareness and ridership growth. The Division builds and maintains strong working relationships with federal, state, and local elected officials, members of the media and transit stakeholders to ensure SEPTA’s priorities and message effectively reach lawmakers and the public.

Government and Community Relations

Administration

Assistant General Manager Marketing and Public and Promotions Government Affairs

Media Relations

Headcount

OPERATING HEADCOUNT Mgmt. Clerical Total Administration 5 - 5 Government and Community Relations 9 - 9 Marketing and Promotions 3 - 3 Media Relations 4 - 4 Total Headcount 21 - 21

193 | SEPTA FY 2021 Operating Budget P r o p o s a l Public and Government Affairs

Budget Amounts in Thousands (‘000)

Net Material Labor & Services Total

Administration $ 598 $ 997 $ 1,595

Government and Community Relations 685 22 707

Marketing and Promotions 173 3,048 3,221

Media Relations 318 7 325

Total $ 1,774 $ 4,074 $ 5,848

Public and Government Affairs Labor Expense and Headcount Trend $ In Thousands $2,000 25

$1,500 20 15 $1,000 10 $500 5 $0 0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal Labor $1,370 $1,356 $1,480 $1,481 $1,752 $1,774 Headcount 20 20 21 21 21 21

Public and Government Affairs Material and Services Trend $ In Thousands $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 Budget Proposal M&S $3,244 $3,460 $4,612 $5,252 $3,868 $4,074

194 | SEPTA FY 2021 Operating Budget P r o p o s a l Public and Government Affairs

Principal Responsibilities

ADMINISTRATION Coordinates, manages, and directs the financial and administrative activities for the Public and Government Affairs Division.

GOVERNMENT and COMMUNITY RELATIONS

State Advocates on behalf of SEPTA’s funding and legislative priorities with the Pennsylvania General Assembly, the Governor’s office, and relevant state departments. Builds and maintains effective relationships with elected officials from the five county region, Senate and House leadership, and committees of jurisdiction. Staff serves as the Authority’s point of contact for legislative and constituent inquiries and develops strategies for engaging local and statewide stakeholders in support of transportation policies that further SEPTA’s operating and capital initiatives.

Federal Works with the region’s Congressional delegation, committees of jurisdiction, and various federal agencies to advance SEPTA’s interests both legislatively and administratively. Reviews and analyzes legislative and regulatory provisions related to transportation authorization and annual appropriations, safety, energy and environmental policy, and accessibility to ensure federal transportation policies further SEPTA’s operating and capital priorities.

Local / Community Works with Philadelphia City Council, Bucks, Chester and Montgomery County Commissioners, Delaware County Council, and local officials to advance operating and capital initiatives to meet the region’s transportation needs. Staff provides proactive outreach before and during SEPTA projects, and responds to issues impacting Council Districts and communities throughout the service area. Staff also attends city, county, and municipal meetings to update the public on SEPTA projects and works with a variety of community groups to address various transit-related issues.

MARKETING and PROMOTIONS Uses innovative and attention-grabbing promotional campaigns to build awareness about SEPTA service. Interacts with current and potential customers to build and maintain ridership across all modes and in all counties. Effectively markets SEPTA by utilizing offline and online media, event marketing, loyalty programs, industry-leading social media engagement, and strategic partnerships with area sports teams, businesses, and cultural institutions. Executes contracts and coordinates activities with third-party agencies to maximize the effectiveness of the Authority’s promotional and marketing portfolio.

MEDIA RELATIONS Responsible for informing customers and the general public about SEPTA service and developing a communications strategy that promotes the Authority locally, regionally and nationally. Staff works in coordination with key internal departments to tell SEPTA’s story. Builds and strengthens relationships with the media through news conferences and events, creating press releases and other content, and distributing information on SEPTA’s website and various social media platforms. The department prioritizes transparency and accessibility, responding to media inquiries 24 hours a day, seven days a week.

195 | SEPTA FY 2021 Operating Budget P r o p o s a l Public and Government Affairs

Fiscal Year 2021 Goals and Business Initiatives

FY 2021 GOALS BUSINESS INITIATIVES

I. Build an advocacy program a) Develop strategies to communicate SEPTA’s that highlights SEPTA’s core mission to diverse constituencies. commitment to providing accessible mobility that drives the economy, supports equity and opportunity, promotes safety and advances sustainability

II. Advocate for SEPTA’s funding a) Work with advocates and stakeholders, and policy priorities at all including the Southeast Partnership for Mobility, levels of government to preserve state and federal funding and identify innovative multi-modal transportation funding solutions. b) Continue strong partnerships with the City of Philadelphia and Bucks, Chester, Delaware and Montgomery Counties, including engaging new Members of Council and Commissioners. c) Respond to legislative constituent inquiries and provide timely information to elected officials and stakeholders. d) Continue successful partnership with legislative offices to enroll senior citizens on the SEPTA Key Senior ID program and develop a card renewal program that maintains that partnership.

III. Continue to demonstrate the a) Work with regional elected officials to highlight impact and importance of the economic impact generated by SEPTA public infrastructure infrastructure investment in communities investment by highlighting the throughout southeastern Pennsylvania and the success of SEPTA’s Capital Commonwealth. Program b) Continue to promote the economic impact of transit in large metro regions and highlight the need to bring systems to a state of good repair and enhanced capacity.

196 | SEPTA FY 2021 Operating Budget P r o p o s a l Public and Government Affairs

Fiscal Year 2021 Goals and Business Initiatives (continued)

FY 2021 GOALS BUSINESS INITIATIVES

IV. Continue proactive approach a) Continue to develop new and unique to community and media opportunities to engage media, across all relations platforms, to inform the public about SEPTA initiatives. b) Utilize SEPTA’s new bilingual public information manager to develop new outreach opportunities and outlets to reach new and diverse communities of customers. c) Establish methods to highlight the Authority’s diversity and positive contributions to the region.

V. Promote regional awareness of a) Communicate and promote the rider benefits of SEPTA’s service and using the SEPTA Key Card. successful initiatives through b) Facilitate meaningful partnerships that support customer, public and the Authority’s mission and overall brand. corporate engagement c) Identify and highlight the advantages of riding SEPTA.

197 | SEPTA FY 2021 Operating Budget P r o p o s a l Public and Government Affairs

Fiscal Year 2020 Accomplishments

FY 2020 Goals Accomplishments

I. Advocate for SEPTA’s  Worked with local, state and national partners and funding and policy coalitions to build upon successful messaging on the priorities in Congress and importance of multi-modal infrastructure investment. the Pennsylvania General Worked with the Southeast Partnership for Mobility – a Assembly regional workgroup comprised of business and civic leaders – on developing findings and recommendations for state and local solutions to create a sustainable transportation investment strategy.

II. Demonstrate the impact  SEPTA’s successful use of Act 89 funds to invest in and importance of public system-wide state of good repair projects was infrastructure investment – highlighted via public events, such as ribbon cuttings Act 89 and the FAST Act – and ground breakings, and through outreach to by highlighting the success elected officials and stakeholders. of SEPTA’s “Rebuilding the System” Capital program

III. Continue proactive  Met with community groups, elected officials and community outreach related stakeholders prior to and throughout SEPTA to capital construction and construction projects and major service initiatives. service initiatives  Attended various events organized by community groups and elected officials promoting use of public transit, SEPTA Key and how to pursue employment at SEPTA. IV. Expand outreach to  Brought on full-time bi-lingual Public Information traditional, new and Manager and expanded outreach to traditional and community-based media new media.  Conducted a series of media tours specific to SEPTA Key implementation to inform customers about usage and advantages. V. Promote regional  Developed new initiatives and partnerships – including awareness of SEPTA's the “Visit the Vines” promotion – to support SEPTA’s progress mission of ridership growth and highlight advantages of riding SEPTA. Successful launch campaign for SEPTA Bus Route 49 and continued promotion of SEPTA Key, the SEPTA App, and the Frequent Bus Network.  Utilized ISEPTAPHILLY platform to reach thousands of social media followers and promote SEPTA’s important role in major events throughout the region.

198 | SEPTA FY 2021 Operating Budget P r o p o s a l 13. Summary of Interdepartmental Expenses

13. Summary of Interdepartmental Expenses

199 | SEPTA FY 2021 Operating Budget Proposal 13. Fringe Benefits

Fringe Benefits are a major expense for SEPTA representing 25.3% of the Fiscal Year 2021 Operating Budget of $1.53 billion. Responsibility for management of fringe benefit costs rests with all Authority departments, however, Finance and Human Resources take the lead in cost control. Expenditures for Fringe Benefits are largely controlled by statutory and contractual obligations and have been significantly influenced by national trends.

Listed below are the various Fringe Benefit categories:

Medical and Life Insurance SEPTA provides medical, prescription drug, dental, vision, and life insurance benefits for union employees, management employees, and retirees in accordance with SEPTA policy and labor agreements negotiated with each respective bargaining unit.

Payroll Taxes This represents the required employer contribution for Social Security (FICA) and Railroad Retirement Taxes (RRT).

Unemployment SEPTA is required to pay into the State and Railroad unemployment compensation funds and is self-insured for non-railroad employees.

Pension This includes pension obligations, excluding Railroad employees who are covered by the Railroad Retirement System.

Workers’ Compensation and FELA Obligations to transit and railroad employees injured on duty for their medical bills and lost wages.

Fiscal Year 2021 Operating Budget Fringe Benefit Expense (Amounts in Thousands)

Medical, Prescription, Dental, Vision & Life Insurance $ 204,894 Payroll and Unemployment Taxes 78,824 Pension 117,920 Workers' Compensation and FELA 27,679

Subtotal $ 429,317

Capital Support and Projects (41,904)

Fringe Benefit Expense $ 387,413

200 | SEPTA FY 2021 Operating Budget Proposal 13. Fringe Benefits

Fiscal Year 2021 Operating Budget Labor and Fringe Benefits Amounts in Thousands (000's)

Net Fringe Department Net Labor Benefits Total

Audit and Investigative Services $ 1,999 $ 1,104 $ 3,103 Communications 1,332 736 2,068 Corporate Staff 3,335 1,842 5,177 Customer Experience and Advocacy 5,756 3,179 8,935 Deputy General Manager/Treasurer Administration 1,609 889 2,498 Employee Development and Relations 12,012 6,635 18,647 Engineering, Maintenance and Construction 84,459 46,653 131,112 Finance 9,068 5,009 14,077 Human Resources 4,596 2,539 7,135 Information Technology 6,559 3,623 10,182 New Payment Technologies 126 70 196 Office of General Counsel 9,385 5,184 14,569 Operations 387,869 214,249 602,118 Planning and Strategic Initiatives 4,102 2,266 6,368 Procurement, Supply Chain and DBE 10,864 6,001 16,865 Public and Government Affairs 1,774 980 2,754 Revenue Operations 14,168 7,826 21,994 System Safety 2,035 1,124 3,159 Transit Police 21,760 12,020 33,780 Vehicle Engineering and Maintenance 128,332 70,887 199,219 Capital Allocation and Other (9,780) (5,402) (15,182)

Total $ 701,360 $ 387,413 $ 1,088,773

201 | SEPTA FY 2021 Operating Budget Proposal 13. Non-Departmental Expenses

Amtrak The expense is for the maintenance and use of Amtrak-owned track and facilities on the Northeast Corridor (between Trenton, NJ and Newark, DE) and the Harrisburg Line (Paoli/Thorndale Line). The Passenger Rail Investment & Improvement Act of 2008 (PRIIA) was implemented October 1, 2015. The budget reflects PRIIA mandates and cost assumptions developed by the Northeast Corridor Commission with input from SEPTA and other commuter agencies on the corridor.

ADA The budgeted contract cost to SEPTA is shown here. The staff cost for the administration of ADA complementary service and other accessibility programs for the disabled is included in the Operations Division under Customized Community Transportation. Shared Ride Program The budgeted cost for contractor door-to-door service for senior citizens. The cost of administrative staff in the Shared Ride Program is included in the Customized Community Transportation budget.

Debt Service Interest and Fees Interest expenses and amortization of insurance premiums associated with the Authority’s outstanding debt. Property Insurance/Other Reflects the projected premiums for insurance on Claims Payouts, Net various Authority assets, as well as other claims payouts net of recoveries. Services for Headquarters’ Maintenance and administrative service expense for Building the operation of the corporate offices at the 1234 Market Street headquarters by a professional real estate management firm. These expenses cover both SEPTA and tenant-occupied space.

Snow Removal/ Includes snow removal and deicing at Regional Rail Severe Weather Contingencies parking lots and station platforms only. Snow removal for all other facilities is accomplished in-house with existing forces and the related labor expense is included in the departmental budgets.

Utilities Expense reflects the cost of non-propulsion electricity, heating oil, water and sewer, natural gas, and steam heat. All are based on projected rates of consumption and contractual or tariff based rates. Also included are expenses for telephone, cellular service and trash removal, which are based on our current contractual agreements.

202 | SEPTA FY 2021 Operating Budget Proposal 13. Non-Departmental Expenses

CCT Connect - ADA Program

In compliance with the Americans with Disabilities Act, CCT Connect provides ADA complementary Paratransit transportation for persons who cannot use or access regular SEPTA fixed route service. Throughout the five-county service area, private carriers are under contract with SEPTA to provide door-to-door transportation to disabled riders by advanced reservation. Projected Fiscal Year 2021 ridership is 639,000 for ADA City Division and 303,000 for the Suburban Division.

One of the main focuses of CCT Connect’s efforts for Fiscal Year 2021 will be the continuation of providing 100% next day rides to ADA program patrons. SEPTA is committed to maintaining a “zero trip denial” policy.

The next-day trip initiative will build upon proactive steps taken during recent years. The entire SEPTA-owned fleet of 460 vehicles is maintained to SEPTA’s standards by the contract carriers. In addition, the Philadelphia trip reservation scheduling and dispatch was centralized under SEPTA supervision along with driver training and testing. Other programs were instituted to enhance contractor accountability and customer satisfaction, including patron service monitoring and mobile data terminal (MDT) swipe card readers on all CCT Connect vehicles.

ADA Program initiatives continuing during Fiscal Year 2021 include the fleet replacement program for optimizing fleet reliability and an enhanced patron eligibility certification. This process will enable those CCT riders who are able, to use fixed route service for some or all of their travel. The training was developed in cooperation with the SEPTA Advisory Committee (SAC) and the disabled community.

Shared Ride Program

The Shared Ride Program (SRP) provides shared, advance-reservation, door-to-door transportation for Pennsylvanians age 65 and older. SEPTA’s CCT Connect Department is the SRP county coordinator for Philadelphia County. The Pennsylvania Lottery Fund reimburses SEPTA for 85% of the cost of each eligible CCT Connect Shared Ride Program trip according to pre-established rates, with the balance coming from patron fares and/or third party agency sponsors. The Shared Ride Program’s goal for Fiscal Year 2021 is to provide a total of 599,000 Shared Ride trips.

The Philadelphia Shared Ride Program Advisory Council (SRPAC), an independent advisory group, provides advice and information to SEPTA on Shared Ride Program service.

Injury and Damage Claims

Fiscal Year 2021 claims expense is budgeted at $24.7 million. Staff from the Authority’s Office of General Counsel, in cooperation with various outside agencies, including the City of Philadelphia and Suburban Counties District Attorney’s offices, aggressively defend against fraudulent claims.

Other Expenses

The Other Expenses category includes propulsion power, fuel, vehicle and facility rentals, and depreciation. A further description of these items can be found in the Operating Expense Section.

203 | SEPTA FY 2021 Operating Budget Proposal Glossary of Acronyms

A ACS-64 Electric locomotives used on Regional Rail lines ACSES II Advanced Civil Speed Enforcement System ADA The Americans with Disabilities Act of 1990 ADAAA ADA Amendments Act of 2008 ADEA Age Discrimination in Employment Act of 1967 AGM Assistant General Manager AIM Advancing Internal Management APC Automatic Passenger Count APTA American Public Transportation Association ATC Automatic Train Control AVL Automatic Vehicle Locator

B BASCSC Building a SEPTA Culture of Service and Creativity B-IV Heavy Rail Vehicle used on the Broad Street Subway BSL Broad Street Line BSS Broad Street Subway (also referred to as the Broad Street Line)

C CAC Citizen Advisory Committee CARD Computer Aided Radio Dispatch CBNR Comprehensive Bus Network Redesign CBTC Communications-Based Train Control CCT Connect Customized Community Transportation Services CHP Combined Heat and Power COBRA Consolidated Omnibus Budget Reconciliation Act CRC Career Resource Connection CRM Customer Relations Management CY Calendar Year

D DEIS Draft Environmental Impact Statement DGM Deputy General Manager DBE Disadvantaged Business Enterprise DSM Disposable Smart Media DVRPC Delaware Valley Regional Planning Commission

E EAP Employee Assistance Program

204 | SEPTA FY 2021 Operating Budget Proposal Glossary of Acronyms

EMU Electric Multiple Unit EMV Europay/MasterCard/Visa EEO/AA Equal Employment Opportunity / Affirmative Action EPA Environmental Protection Agency ESCO Energy Service Company ESL English as a Second Language ESMS Environmental and Sustainability Management System

F FELA Federal Employers Liability Act FHWA Federal Highway Administration FICA Federal Insurance Contributions Act FIT Facilities Improvement Team FLSA Fair Labor Standards Act FMLA Family and Medical Leave Act FRA Federal Railroad Administration FTA Federal Transit Administration FTC Frankford Transportation Center FTE Full-Time Equivalent Position FY Fiscal Year

G GASB Governmental Accounting Standards Board GEC General Engineering Consultant GESA Guaranteed Energy Savings Agreement GFOA Government Finance Officers Association GIS Geographic Information System GM General Manager

H HIPAA Health Insurance Portability and Accountability Act of 1996 HRIS Human Resources Information System

I IOD Injuries on Duty ISRP Infrastructure Safety Renewal Program IVR Interactive Voice Response System

J JHSC Joint Health and Safety Committee

K KTFC Keystone Transportation Funding Coalition

205 | SEPTA FY 2021 Operating Budget Proposal Glossary of Acronyms

L LEAD Leadership Exchange Development Program LEED Leadership in Energy and Environmental Design LIBOR London Interbank Offered Rate LRV Light Rail Vehicle LSC Location Safety Committee LUCY Loop Through University City

M MDBF Mean Distance Between Failures MDT Mobile Data Terminal M-IV Heavy Rail Vehicle used on the Market-Frankford Subway-Elevated Line MPC Management Planning and Control Operating Budget Software MPO Metropolitan Planning Organization MFSE Market-Frankford Subway-Elevated MRDG Metropolitan Rail Discussion Group MSHL Media-Sharon Hill Line MW Megawatt MWh Megawatt-Hour N N5 Heavy Rail Vehicle used on the Norristown High Speed Line NEC Northeast Corridor NHSL Norristown High Speed Line NJT New Jersey Transit NPT New Payment Technology NTSB National Transportation Safety Board

O OCIP Owner Controlled Insurance Program OEM Original Equipment Manufacturer OGC Office of General Counsel OSIP Operational Safety Improvement Program

P PA UCP Commonwealth of Pennsylvania’s Unified Certification Program PADEP Pennsylvania Department of Environmental Protection PCC President’s Conference Committee streetcar or trolley PECO Philadelphia Electric Company PennDOT Pennsylvania Department of Transportation PLRB Pennsylvania Labor Relations Board PPE Personal Protective Equipment PPTA Pennsylvania Public Transportation Association PRIIA Passenger Rail Investment and Improvement Act of 2008 PTAF Public Transportation Assistance Fund PTC Positive Train Control PWD Philadelphia Water Department

206 | SEPTA FY 2021 Operating Budget P r o p o s a l Glossary of Acronyms

R RAP Rapid Assimilation Program RFP Request for Proposal ROI Return on Investment RRD Regional Rail Division RRT Railroad Retirement Taxes RTKL Right-To-Know Law

S SAC SEPTA Advisory Committee For Accessible Transportation SAM Supervisory, Administrative and Management Employees SBA Special Board of Adjustment SBE Small Business Enterprise SEPTA Southeastern Pennsylvania Transportation Authority SL4 Silverliner 4 EMU Railcar used on Regional Rail Lines SL5 Silverliner 5 EMU Railcar used on Regional Rail Lines SOG State of Good Repair SORT Special Operations Response Team SRP Shared Ride Program SRPAC Shared Ride Program Advisory Council SSPP System Safety Program Plan

T TIP Transit Improvement Program TMA Transportation Management Associations TOD Transit Oriented Development TWU Transport Workers Union

U USERRA Uniformed Services Employment and Reemployment Rights Act of 1994

V VEM Vehicle Engineering and Maintenance VIPR Visible Intermodal Prevention Response Team VOH Vehicle Overhaul Program

W WIT Women in Transit

Y YAC Youth Advisory Committee

207 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

A

Accessible - As defined by FTA, a site, building, facility, or portion thereof that complies with defined standards and that can be approached, entered, and used by persons with disabilities.

Accessible Service - A term used to describe service that is accessible to non-ambulatory riders with disabilities. This includes fixed-route bus service with wheelchair lifts or ADA Paratransit service with wheelchair lift equipped vehicles.

Accrual Basis - A basis of accounting in which expenses are recognized at the time they are incurred and revenue is recognized when earned, as opposed to disbursed or received.

ADA Paratransit Service - In accordance with the Americans with Disabilities Act (ADA), SEPTA provides comparable service for people with disabilities who are functionally unable to use regular accessible fixed-route bus service for some or all of their transportation needs. Eligible individuals can travel whenever and wherever buses operate in SEPTA’s five-county service region. See also “CCT Connect”.

Ambassador - SEPTA management or third party contract employees temporarily enlisted during special events or emergencies to serve as customer service representatives to aid in crowd control and passenger way findings.

Americans with Disabilities Act of 1990 - This federal act requires many changes to transit vehicles, operations and facilities to ensure that people with disabilities have access to jobs, public accommodations, telecommunications, and public services, including public transit.

Amtrak - Service Mark of the National Railroad Passenger Corporation and subsidiaries. Primarily provides nationwide intercity passenger railroad service.

B

Balanced Budget - A budget in which expected revenues equal expected expenses during a fiscal period. SEPTA’s enabling legislation requires the Board of Directors to adopt a balanced budget before the beginning of each fiscal year.

Blue Line - See “Market-Frankford Subway-Elevated”

Bombardier – Manufacturer of Aerospace and Rail equipment

Broad Street Line - A rapid transit subway running under Philadelphia’s main north-south street. The Broad Street Subway opened in 1928 with several extensions over the years. A spur under Ridge Avenue to 8th and Market Streets opened in 1932. Also referred to as the BSL, BSS and “Orange Line”.

Budget - A plan of financial activity for a specified period of time indicating all planned revenues and expenses for the budget period.

Bus - A transit mode comprised of rubber tired passenger vehicles operating on fixed routes and schedules over roadways. Vehicles are powered by diesel, gasoline, battery or alternative fuel engines contained within the vehicle.

208 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

C

Capital Expenditure - Expenses that acquire, improve, or extend the useful life of any fixed asset item with an expected life of three or more years, e.g., rolling stock, track and structure, support facilities and equipment, and stations and passenger facilities. SEPTA includes capital expenditures in the Capital Budget, which is published separately from this document.

Car-Mile - A single mile traveled by either a single vehicle or a single rail car in a multiple car consist.

CCT Connect - SEPTA Customized Community Transportation (CCT) provides paratransit service — CCT Connect — to individuals with disabilities and senior citizens. In addition, SEPTA's bus fleet is 100% accessible.

CMAQ (Congestion Mitigation/Air Quality) Program - A federal grant program in which FHWA funds are transferred to FTA for transit projects designed to improve air quality and reduce traffic congestion.

Commuter Rail - Local and regional passenger train operations between a central city, its suburbs and/or another central city. It may be either locomotive-hauled or self-propelled, and is characterized by specific station-to-station fares, railroad employment practices and usually only one or two stations in the central business district. Also referred to locally as Railroad, Regional Rail and RRD.

Contributed Capital - Reflects capital grants received for the acquisition of fixed assets. Assets acquired with grants are depreciated over the estimated life of the applicable asset. Contributed Capital is also amortized over the same estimated life of the asset.

Cost Per Mile - Operating expense divided by vehicle miles for a particular program or in total.

Cost Per Passenger - Operating expense divided by ridership for a particular program or in total.

Customer Satisfaction Survey – A survey that is conducted every 2-3 years to collect rating observations about the various modes of SEPTA transit from approximately 1,950 riders and non-riders in the SEPTA region.

D

Deadhead - The miles and hours that a vehicle travels when out of revenue service. Deadhead includes leaving or returning to the garage or yard facility; or changing routes and when there is no expectation of carrying revenue passengers. However, deadhead does not include charter service, operator training or maintenance training.

Debt Service - The payment of interest on outstanding debt and the repayment of principal on long term borrowed funds according to a predetermined payment schedule.

Deficit - The amount by which revenue and subsidy falls short of expenses during a given accounting period.

209 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

Delaware Valley Regional Planning Commission - The area-wide agency, or Metropolitan Planning Organization (MPO), charged with the conduct of the urban transportation planning process. It is also the single, region-wide recipient of Federal funds for transportation planning purposes. Together with the state, it carries out the planning and programming activities necessary for Federal capital funding assistance. The MPO is designated by agreement among the various units of local government and the governor.

Depreciation and Amortization - The charges that reflect the loss in service value of the transit agency’s assets. Depreciated items have a high initial cost and a useful life of more than one accounting period. In order to account for the reduction in value (usefulness) of this type of asset, a portion of the cost is expensed each year of the asset’s life.

F

Farebox Revenue - Revenues obtained from passengers and other fare subsidies except the state reduced fare subsidy program. Farebox revenue is also referred to as Passenger Revenue.

Fares - The amount charged to passengers for use of various services.

Fast Act – Fixing America’s Surface Transportation Act. Passed by Congress and signed into law by President Obama on December 7, 2015, providing long-term federal funding for critical transportation needs.

Federal Transit Administration - The FTA is the federal agency which provides financial assistance to cities and communities to provide mobility to their citizens.

Fiscal Year - SEPTA’s fiscal year runs from July 1 through June 30.

Fixed Guideway - A mass transportation facility using and occupying a separate right-of-way or rail for the exclusive use of mass transportation and other high occupancy vehicles; or using a fixed catenary system useable by other forms of transportation.

Fixed Route Service - Service provided on a repetitive, fixed-schedule basis along a specific route with vehicles stopping to pick up and deliver passengers to specific locations; each fixed- route trip serves the same origins and destinations, unlike demand responsive and taxicabs.

Flexible Funds - Federal funds made available by MAP-21 that can be used for various transportation projects, including both highway and mass transit projects. Allocation of these funds is at the discretion of regional Metropolitan Planning Organizations (MPOs) and state governments.

Fringe Benefits - Payments or accruals to others (insurance companies, governments, etc.) on behalf of an employee and payments or accruals direct to an employee arising from something other than the performance of a duty. These payments are costs over and above “labor” costs, but still arising from the employment relationship.

210 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

Full-Time Equivalent Position (FTE) - A measurement equal to one staff person working a full schedule for one year.

Fully Allocated Costs - The distribution of operating expenses to each mode by type of service and function. Fully allocated costs account for all direct costs plus the assignment of any joint or shared expenses.

Funding Formula - A specific formula used to determine a subsidy level.

G

Government Finance Officers Association Mission Statement (GFOA) - The purpose of the Government Finance Officers Association is to enhance and promote the professional management of governments for the public benefit by identifying and developing financial policies and best practices and promoting their use through education, training, facilitation of member networking, and leadership.

Green Line - See “Subway-Surface Lines”

H

Hay Evaluation System – A job performance evaluation method used by SEPTA.

Headquarters Allocation - A method used to allocate the costs associated with operation and administration of SEPTA’s headquarters division to the other four operating divisions.

Headway - Time interval between vehicles moving in the same direction on a particular fixed route.

Heavy Rail - A transit mode that is an electric railway with the capacity for a heavy volume of traffic. It is characterized by high speed and rapid acceleration passenger rail cars operating individually or in multi-car trains on fixed rails; separate rights-of-way from which all other vehicular and foot traffic are excluded; sophisticated signaling, and high platform loading.

Heavy Rail Cars - Rail cars with motive capability, driven by electric power taken from overhead lines or third rails, configured for passenger traffic and usually operated on exclusive rights-of-way.

Hybrid Bus - A bus that is powered by a combination of electricity and diesel, gasoline or alternative fuel.

I

Infrastructure - The physical assets of the Authority, e.g., rail lines and yards, power distribution, signaling, switching, and communications equipment, passenger stations, information systems, and roadways, upon which the continuance and growth of transit depend.

Interest Expense - The charges for the use of borrowed capital incurred by the transit agency, including interest on long term and short term debt obligations.

Interlocking – An arrangement of signal apparatus and turnouts that prevents conflicting movements through an arrangement of tracks such as junctions or crossings.

211 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

ISO 14001 Environmental Certification – The international standard that specifies requirements for an effective environment management system (EMS).

L

Leases and Rentals - The payments for the use of capital assets not owned by the transit agency.

Light Rail - A transit mode that typically is an electric railway with a lighter volume traffic capacity compared to heavy rail. It is characterized by passenger rail cars operating individually or in short, usually two car trains on fixed rails on shared or exclusive right-of-way; low or high platform loading; and vehicle power drawn from an overhead electric line via a trolley pole or a pantograph.

Light Rail Car - A rail car with motive capability, usually driven by electric power taken from overhead lines, configured for passenger traffic and usually operating on non-exclusive right-of- way. Also known as “streetcar,” “trolley car” and “trolley”.

Linked Trip - A single, one-way trip without regard for the number of vehicles boarded to make the trip (i.e., a home-to work trip taken by boarding a bus, to a train, to another bus represents one linked trip or three unlinked trips).

M

Market-Frankford Subway-Elevated - The Market-Frankford Line runs on an elevated guideway from the Frankford Transportation Center in Northeast Philadelphia, through Center City Philadelphia as a subway, and continuing on an elevated guideway above Market Street in West Philadelphia into 69th Street Terminal in Upper Darby, Delaware County. Also referred to as the Market Street Elevated (MSE), MFSE and “Blue Line.”

Mean Distance Between Failure – A measure of vehicle availability and reliability, equal to the average distance between failures for all vehicles within a particular mode.

N

Net Position - Total assets and deferred outflows of resources minus total liabilities and deferred inflows of resources of the Authority. This term is used in SEPTA’s annual financial statements.

Non-Revenue Vehicle - Vehicles and equipment that are used for construction, vehicle and facility maintenance, and service supervision. These vehicles are not used for passenger revenue service.

O

Operating Assistance - Financial assistance for transit operations (as opposed to capital) expenditures.

Operating Budget - The planning of revenues and expenses for a given period of time to maintain daily operations.

212 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

Operating Ratio - Operating revenue divided by operating expense. For this purpose, the Commonwealth has defined operating revenue to include Passenger Revenue, Shared Ride program revenue, Investment Income, Other Income and Route Guarantees. Also for this purpose, the Commonwealth excludes Depreciation from operating expenses.

Orange Line – See “Broad Street Line”

P

Passenger Miles - The cumulative sum of the distance ridden by each passenger.

Public Transportation - As defined in the Federal Transit Act, transportation provided by bus or rail, or other conveyance, either publicly or privately owned, providing to the public general or special service (but not including school buses or charter or sightseeing service) on a regular continuing basis. Public transportation is also synonymous with the terms mass transportation and transit.

R

Revenue Car Mile or Revenue Vehicle Mile - A single mile traveled by one car (or vehicle) during which the vehicle is in revenue service (i.e., picking up and/or dropping off passengers).

Revenue Vehicle - A single vehicle or a single car in a multiple car consist during which the vehicle is in revenue service (i.e., picking up and/or dropping off passengers).

Reverse Commute - City to suburb commute. This phrase refers to the fact that most riders commute from the suburbs to the city.

Ridership - Each passenger counted each time that person boards a vehicle. See also unlinked passenger trips.

Rolling Stock - Public transportation vehicles including commuter rail cars, locomotives, rapid transit cars, light rail cars, trolleybuses, buses, and vans.

Route Mile - A one-mile segment of a given fixed route in a fixed route network.

S

Shared-Ride Program - The Shared-Ride program is a door-to-door, advance-reservation, ride-sharing service, offered to senior citizens 65 years of age and residents of Philadelphia. This service can be used to travel within the City of Philadelphia and to any location in the surrounding counties within three miles of the City's border. Pennsylvania’s Lottery Fund contributes to the cost of operating this program.

Silverliner - A multiple unit self-propelled railroad passenger car, powered by electricity collected from overhead catenary wires. The Silverliner fleet was acquired over time and currently consists of two vehicle types—Silverliner IV and V. These railroad cars feature stainless steel construction and represent the majority of SEPTA’s railroad fleet.

Streetcar - See “Trolley”

213 | SEPTA FY 2021 Operating Budget Proposal Glossary of Terms

Subsidy - Funds received from another source that are used to cover the cost of a service or program that is not self-supporting.

Subway-Surface Lines - A combination of five trolley lines serving various neighborhoods in West Philadelphia or nearby suburban communities above ground, reaching Center City Philadelphia through a subway tunnel partially shared with the Market-Frankford Line.

Surplus - The amount by which revenue and subsidy exceeds total expenses during a given accounting period.

T

Total Vehicle Miles - The sum of all miles operating by passenger vehicles, including mileage when no passengers are carried.

Trackless Trolley - See “Trolleybus”

Trapeze - Software utilized by SEPTA for scheduling and management of transportation operations.

Trolley - A powered rail car, usually driven by electric power drawn from overhead wires via a trolley pole or pantograph. The vehicle usually operates on shared rights-of-way. Also known as “trolley car,” “streetcar” and “light rail car”.

Trolleybus - An electric, rubber-tired transit vehicle, manually steered, propelled by a motor drawing current through overhead wires from a central power source not on board the vehicle. Also known locally as “Trackless Trolley”.

V

VERITAS - Authority’s Customer Relations Management (CRM) program

214 | SEPTA FY 2021 Operating Budget Proposal